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Act
In force
Previous version
as at 01 March 2024
|
2007 No 97
|
Administered by Inland Revenue Department
Income Tax Act 2007
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Act
In force
Previous version
as at 01 March 2024
|
2007 No 97
|
Administered by Inland Revenue Department
Income Tax Act 2007
Checking for alerts... Loading...
Income Tax Act 2007
Contents
A 1
Title
A 2
Commencement
Part A Purpose and interpretation
AA 1
Purpose of Act
AA 2
Interpretation
AA 3
Definitions
AA 4
Crown bound
Part B Core provisions
Subpart BA—Purpose
BA 1
Purpose
Subpart BB—Income tax and resulting obligations
BB 1
Imposition of income tax
BB 2
Main obligations
BB 3
Overriding effect of certain matters
Subpart BC—Calculating and satisfying income tax liabilities
BC 1
Non-filing and filing taxpayers
BC 2
Annual gross income
BC 3
Annual total deduction
BC 4
Net income and net loss
BC 5
Taxable income
BC 6
Income tax liability of filing taxpayer
BC 7
Income tax liability of person with schedular income
BC 8
Satisfaction of income tax liability
Subpart BD—Income, deductions, and timing
BD 1
Income, exempt income, excluded income, non-residents’ foreign-sourced income, and assessable income
BD 2
Deductions
BD 3
Allocation of income to particular income years
BD 4
Allocation of deductions to particular income years
Subpart BE—Withholding liabilities
BE 1
Withholding liabilities
Subpart BF—Other obligations
BF 1
Other obligations
Subpart BG—Avoidance
BG 1
Tax avoidance
Subpart BH—Double tax agreements
BH 1
Double tax agreements
Part C Income
Subpart CA—General rules
CA 1
Amounts that are income
CA 2
Amounts that are exempt income or excluded income
Subpart CB—Income from business or trade-like activities
Business generally
CB 1
Amounts derived from business
CB 2
Amounts received on disposal of business assets that include trading stock
Schemes for profit
CB 3
Profit-making undertaking or scheme
Personal property
CB 4
Personal property acquired for purpose of disposal
CB 5
Business of dealing in personal property
Land
CB 6A
Disposal within 10 years: Bright-line test for residential land
CB 6AB
Residential land transferred in relation to certain family trusts and other capacities
CB 6AC
Residential land transferred in relation to certain Māori family trusts
CB 6AE
Certain transfers of residential land included in settlement of claim under the Treaty of Waitangi
CB 6
Disposal: land acquired for purpose or with intention of disposal
CB 7
Disposal: land acquired for purposes of business relating to land
CB 8
Disposal: land used for landfill, if notice of election
CB 9
Disposal within 10 years: land dealing business
CB 10
Disposal within 10 years: land development or subdivision business
CB 11
Disposal within 10 years of improvement: building business
CB 12
Disposal: schemes for development or division begun within 10 years
CB 13
Disposal: amount from major development or division and not already in income
CB 14
Disposal: amount from land affected by change and not already in income
CB 15
Transactions between associated persons
CB 15B
When land acquired
Exclusions for bodies controlled by local authorities
CB 15C
Council-controlled organisations and other companies
Exclusions for Kāinga Ora–Homes and Communities and wholly-owned group
CB 15D
Kāinga Ora–Homes and Communities and wholly-owned group
Exclusions for residential land
CB 16A
Main home exclusion for disposal within 10 years
CB 16
Residential exclusion from sections CB 6 to CB 11
CB 17
Residential exclusion from sections CB 12 and CB 13
CB 18
Residential exclusion from section CB 14
Exclusions for business premises
CB 19
Business exclusion from sections CB 6 to CB 11
CB 20
Business exclusion from sections CB 12 and CB 13
Exclusions for farm land
CB 21
Farm land exclusion from sections CB 12 and CB 13
CB 22
Farm land exclusion from section CB 14
Exclusion for investment land
CB 23
Investment exclusion from sections CB 12 and CB 13
CB 23B
Land partially disposed of or disposed of with other land
Timber
CB 24
Disposal of timber or right to take timber
CB 25
Disposal of land with standing timber
Investments
CB 26
Disposal of certain shares by portfolio investment entities
Farming, forestry, or fishing
CB 27
Income equalisation schemes
CB 27B
Entering partners’ livestock income
[Repealed]
Environmental restoration
CB 28
Environmental restoration accounts
Minerals
CB 29
Disposal of minerals
Intellectual property
CB 30
Disposal of patent applications or patent rights
Transfer of business
CB 31
Disposal of business: transferred employment income obligations
Stolen property
CB 32
Property obtained by theft
Look-through companies
CB 32B
Owners of look-through companies
CB 32C
Dividend income for first year of look-through company
Mutual associations
CB 33
Amounts derived by mutual associations
CB 34
Amounts derived by members from mutual associations
Partners and partnerships
CB 35
Amounts of income for partners
Emissions units under Climate Change Response Act 2002
CB 36
Disposal of emissions units
Subpart CC—Income from holding property (excluding equity)
Land use
CC 1
Land
CC 1B
Consideration relating to grant, renewal, extension, or transfer of leasehold estate or licence
CC 1C
Consideration for agreement to surrender leasehold estate or terminate licence
CC 2
Non-compliance with covenant for repair
Financial instruments
CC 3
Financial arrangements
CC 4
Payments of interest
CC 5
Annuities
CC 6
Prizes received under Building Societies Act 1965
CC 7
Consideration other than in money
CC 8
Use of money interest payable by Commissioner
CC 8B
Certain commercial bills: non-resident holders
Royalties
CC 9
Royalties
CC 10
Films
Finance leases
CC 11
Lessee acquiring lease asset on expiry of term of lease
CC 12
Lessor acquiring lease asset on expiry of term of lease
Hire purchase agreements
CC 13
Amounts paid in income years after hire purchase agreement ends
IFRS leases
CC 14
NZ IFRS 16 leases
Subpart CD—Income from equity
Income
CD 1
Dividend
CD 2
Distribution excluded from being dividend
What is a dividend?
CD 3
Meaning of dividend
CD 4
Transfers of company value generally
CD 5
What is a transfer of company value?
CD 6
When is a transfer caused by a shareholding relationship?
CD 7
Bonus issues in lieu of dividend
CD 7B
Shares issued under profit distribution plans
CD 8
Elections to make bonus issue into dividend
CD 9
Interests in money or property of foreign unit trust
CD 10
Bonus issue by foreign unit trust instead of money or property
CD 11
Avoidance arrangements
CD 12
Superannuation schemes entering trust rules
CD 13
Notional distributions of producer boards and co-operative companies
CD 14
Notional distributions of emigrating companies
CD 15
Tax credits linked to dividends
CD 16
Certain dividends not increased by tax credits
CD 17
Credit transfer notice
CD 18
Dividend reduced if foreign tax paid on company’s income
CD 19
Foreign tax credits and refunds linked to dividends
CD 20
Benefits of shareholder-employees or directors
CD 21
Attributed repatriations from controlled foreign companies
[Repealed]
What is not a dividend?
CD 22
Returns of capital: off-market share cancellations
CD 23
Ordering rule and slice rule
CD 23B
Returns of capital: shares repurchased under profit distribution plans
CD 24
Returns of capital: on-market share cancellations
CD 25
Treasury stock acquisitions
CD 26
Capital distributions on liquidation or emigration
CD 27
Property made available intra-group
CD 28
Transfers of certain excepted financial arrangements within wholly-owned groups
CD 29
Non-taxable bonus issues
CD 29B
Issues to shareholders of rights to subscribe for or sell back shares
CD 29C
Transfers to shareholders by ASX-listed Australian company of shares in subsidiary
CD 30
Transfer by unit trust of legal interest after beneficial interest vests
CD 31
Flat-owning companies
CD 32
Employee benefits
CD 33
Payments corresponding to notional distributions of producer boards and co-operative companies
CD 34
Distribution to member of co-operative company based on member’s transactions
[Repealed]
CD 34B
Distributions to members of co-operative companies
CD 35
Resident’s restricted amalgamations
CD 36
Foreign investment fund income
CD 36B
Foreign superannuation withdrawals and pensions from foreign superannuation scheme
CD 37
Maori authority distributions
Calculation rules
CD 38
General calculation rule for transfers of company value
CD 39
Calculation of amount of dividend when property made available
CD 40
Adjustment if dividend recovered by company
CD 41
Adjustment if amount repaid later
CD 42
Adjustment if additional consideration paid
CD 43
Available subscribed capital (ASC) amount
CD 44
Available capital distribution amount
Attributed repatriation calculation rules
CD 45
When does a person have attributed repatriation from a controlled foreign company?
[Repealed]
CD 46
New Zealand repatriation amount
[Repealed]
CD 47
New Zealand property amount
[Repealed]
CD 48
Cost of tangible property
[Repealed]
CD 49
Cost of associated party equity
[Repealed]
CD 50
Outstanding balances of financial arrangements
[Repealed]
CD 51
Property transfers between associated persons
[Repealed]
CD 52
Unrepatriated income balance
[Repealed]
Prevention of double taxation
CD 53
Prevention of double taxation of share cancellation dividends
Returning share transfers
CD 54
Replacement payments
Subpart CE—Employee or contractor income
Employment income
CE 1
Amounts derived in connection with employment
CE 1B
General rule: accommodation provided by employers
CE 1C
Exception: overseas accommodation
CE 1D
Exception: accommodation provided by Defence Force
CE 1E
Exception: accommodation provided to ministers of religion
CE 1F
Treatment of amounts derived by cross-border employees
CE 2
Benefits under employee share schemes
CE 3
Restrictions on disposal of shares under share purchase agreements
[Repealed]
CE 4
Adjustments to value of benefits under share purchase agreements
[Repealed]
Definitions
CE 5
Meaning of expenditure on account of an employee
CE 6
Trusts are nominees
CE 7
Meaning of employee share scheme
CE 7B
Meaning of share scheme taxing date
CE 7C
Meaning of employee share scheme beneficiary
CE 7CB
Meaning of market value
CE 7D
Meaning of replacement employee share scheme
Attributed income
CE 8
Attributed income from personal services
Restrictive covenants and exit inducement payments
CE 9
Restrictive covenants
CE 10
Exit inducements
Income protection insurance
CE 11
Proceeds from claims under policies of income protection insurance
Tax credits
CE 12
Tax credits for personal service rehabilitation payments
Subpart CF—Income from living allowances, foreign superannuation, compensation, and government grants
CF 1
Benefits, pensions, compensation, and government grants
CF 2
Remission of specified suspensory loans
CF 3
Withdrawals from foreign superannuation scheme
Subpart CG—Recoveries
CG 1
Amount of depreciation recovery income
CG 2
Remitted amounts
CG 2B
Remitted amounts on discharge from bankruptcy
[Repealed]
CG 2C
Remitted and other amounts: companies in liquidation
CG 2D
Remitted and other amounts: companies leaving groups
CG 2E
Remitted and other amounts: income apportionment
CG 3
Bad debt repayment
CG 4
Receipts for expenditure or loss from insurance, indemnity, or otherwise
CG 5
Recoveries or receipts by employers from superannuation schemes
CG 5B
Receipts from insurance, indemnity, or compensation for interruption or impairment of business activities
CG 6
Receipts from insurance, indemnity, or compensation for trading stock
CG 7
Recoveries after deduction of payments under lease
CG 7B
Disposals or applications after earlier deductions
CG 7C
Disposal or rerecognition of derecognised non-depreciable assets
CG 8
Capital contributions
CG 8B
Recoveries after deductions for high-priced bloodstock removed from New Zealand
CG 8C
Recoveries after deductions for high-priced bloodstock disposed of to non-residents
CG 9
Recovery of deductions for aircraft engine overhaul
Subpart CH—Adjustments
Matching rules: revenue account property, prepayments, and deferred payments
CH 1
Adjustment for closing values of trading stock, livestock, and excepted financial arrangements
CH 2
Adjustment for prepayments
CH 3
Adjustment for deferred payment of employment income
Change to accounting practice
CH 4
Adjustment for change to accounting practice
Goods and services tax (GST)
CH 5
Adjustment for GST
Finance leases
CH 6
Adjustments for certain finance and operating leases
Avoidance and non-market transactions
CH 7
Adjustment for avoidance arrangements
CH 8
Market value substituted
Interest apportionment on thin capitalisation
CH 9
Interest apportionment: excess debt entity
CH 10
Interest apportionment: reporting bank
CH 10B
Interest apportionment: public project debt
Expenditure other than for entities’ purposes
CH 11
Te Awa Tupua and Te Pou Tupua
Financial instruments and hybrid mismatches
CH 12
Income from hybrid mismatch arrangement
Feasibility expenditure clawback
CH 13
Feasibility expenditure clawback
Subpart CO—Income from voluntary activities
CO 1
Income from voluntary activities
Subpart CP—Income from portfolio investment entities
CP 1
Attributed income of investors in multi-rate PIEs
Subpart CQ—Attributed income from foreign equity
Attributed controlled foreign company income
CQ 1
Attributed controlled foreign company income
CQ 2
When attributed CFC income arises
CQ 3
Calculation of attributed CFC income
Foreign investment fund income
CQ 4
Foreign investment fund income
CQ 5
When FIF income arises
CQ 6
Calculation of FIF income
CQ 7
Treatment of attributing interests subject to returning share transfer
[Repealed]
Subpart CR—Income from insurance
CR 1
Policyholder base income of life insurer
CR 2
Shareholder base income of life insurer
CR 3
Income of non-resident general insurer
CR 3B
Lloyd’s of London: income from life insurance premiums
CR 4
Income for general insurance outstanding claims reserve
Subpart CS—Superannuation funds
[Repealed]
Withdrawals
CS 1
Withdrawals
[Repealed]
Exclusions
CS 2
Exclusions of withdrawals of various kinds
[Repealed]
CS 3
Exclusion of withdrawal on grounds of hardship
[Repealed]
CS 4
Exclusion of withdrawal to settle division of relationship property
[Repealed]
CS 5
Exclusion of withdrawal paid as annuity or pension
[Repealed]
CS 6
Exclusion of withdrawal on partial retirement
[Repealed]
CS 7
Exclusion of withdrawal when member ends employment
[Repealed]
CS 8
Exclusion of withdrawal when member ends employment: lock-in rule
[Repealed]
CS 9
Exclusion of withdrawal from defined benefit fund when member ends employment
[Repealed]
CS 10
When member treated as not ending employment
[Repealed]
CS 10B
Exclusion of permitted withdrawals from KiwiSaver schemes and complying superannuation funds
[Repealed]
Transfers to or from superannuation funds and superannuation schemes
CS 11
Transfer by superannuation fund to another superannuation fund
[Repealed]
CS 12
Transfer from superannuation scheme to superannuation fund
[Repealed]
CS 13
Investment by superannuation fund in another superannuation fund
[Repealed]
Treatment of amounts when superannuation fund becomes superannuation scheme or vice versa
CS 14
Superannuation fund becomes superannuation scheme
[Repealed]
CS 15
Superannuation fund becomes foreign superannuation scheme
[Repealed]
CS 16
Superannuation scheme becomes superannuation fund
[Repealed]
Treatment of distributions when superannuation fund wound up
CS 17
Superannuation fund wound up
[Repealed]
Treatment of loans to members
CS 18
Value of loan treated as fund income
[Repealed]
Subpart CT—Income from petroleum mining
CT 1
Disposal of exploratory material or petroleum mining asset
CT 2
Damage to assets
CT 3
Exploratory well used for commercial production
CT 4
Partnership interests and disposal of part of asset
CT 5
Petroleum mining operations outside New Zealand
CT 5B
Resuming commercial production
Definitions
CT 6
Meaning of petroleum miner
CT 6B
Meaning of petroleum mining operations
CT 7
Meaning of petroleum mining asset
Subpart CU—Income from mineral mining
CU 1
Mineral miner’s income
CU 2
Treatment of mining land
CU 3
Disposal of mineral mining assets
CU 4
Recovery of certain expenditure
CU 5
Partnership interests and disposal of part of asset
Definitions
CU 6
Meaning of mineral miner
CU 7
Some definitions
CU 8
Meaning of listed industrial mineral
CU 9
Some definitions
CU 10
Mining asset used to derive income other than income from mining
[Repealed]
CU 11
Meaning of asset for sections CU 3 to CU 10
[Repealed]
CU 12
Application of sections to resident mining operators
[Repealed]
CU 13
Application of sections to non-resident mining operators
[Repealed]
CU 14
Recovery of reinvestment profit on disposal of mining shares
[Repealed]
CU 15
Recovery of reinvestment profit not used for mining purposes
[Repealed]
CU 16
Recovery of reinvestment profit on repayment of loans
[Repealed]
CU 17
Repayment by mining company of amount written off
[Repealed]
CU 18
Amount treated as repayment for purposes of section CU 17: excess
[Repealed]
CU 19
Amount treated as repayment for purposes of section CU 17: net income
[Repealed]
CU 20
Mining company or mining holding company liquidated
[Repealed]
Definitions
CU 21
Meaning of income from mining
[Repealed]
CU 22
Meaning of mining company
[Repealed]
CU 23
Meaning of mining development expenditure
[Repealed]
CU 24
Meaning of mining exploration expenditure
[Repealed]
CU 25
Meaning of mining operations
[Repealed]
CU 26
Meaning of mining venture
[Repealed]
CU 27
Meaning of resident mining operator
[Repealed]
CU 28
Meaning of specified mineral
[Repealed]
CU 29
Other definitions
[Repealed]
Subpart CV—Income specific to certain entities
CV 1
Group companies
CV 2
Consolidated groups: income of company in group
CV 3
Consolidated groups: arrangement for disposal of shares
CV 4
Amalgamated companies: amount derived after amalgamation
CV 5
Statutory producer boards
CV 6
Crown Research Institutes
CV 7
Australian wine producer rebate
CV 8
Regulations: Australian wine producer rebate
CV 9
Supplementary dividend holding companies
[Repealed]
CV 10
Foreign dividend payment account companies or conduit tax relief companies
[Repealed]
CV 11
Maori authorities
CV 12
Trustees: amounts received after person’s death
CV 13
Amounts derived from trusts
CV 14
Distributions from community trusts
CV 15
Amounts derived from trusts while person absent from New Zealand
CV 16
Non-resident shippers
CV 17
Non-exempt charities: taxation of tax-exempt accumulation
CV 18
Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests
CV 19
Additional income for certain imputation credits
CV 20
Employee share schemes
Subpart CW—Exempt income
Income from business or trade-like activities
CW 1
Forestry companies established by the Crown, Maori owners, and holding companies acquiring land with standing timber from founders
CW 1B
Treaty of Waitangi claim settlements: rights to take timber
CW 2
Forestry encouragement agreements
CW 3
Forestry companies and Maori investment companies
CW 3B
Pre-1990 forest land units: emissions trading scheme
[Repealed]
CW 3C
Certain subdivisions of land
Income from holding property (excluding equity)
CW 4
Annuities under life insurance policies
CW 5
Payments of interest: post-war credits
CW 6
Payments of interest: farm mortgages
CW 7
Foreign-sourced interest
CW 8
Money lent to government of New Zealand
CW 8B
Certain amounts derived from use of assets
Income from equity
CW 9
Dividend derived from foreign company
CW 10
Dividend within New Zealand wholly-owned group
CW 10B
Dividends derived by council-controlled organisation holding companies
CW 11
Dividend of conduit tax relief holding company
[Repealed]
CW 12
Proceeds of share disposal by qualifying foreign equity investor
CW 13
Proceeds from share or option acquired under venture investment agreement
CW 14
Dividends derived by qualifying companies
CW 15
Dividends paid by qualifying companies
Employee or contractor income
CW 16
Allowance of Governor-General and other benefits and privileges
CW 16B
Accommodation expenditure: out-of-town secondments and projects
CW 16C
Time periods for certain accommodation expenditure
CW 16D
Accommodation expenditure: conferences and overnight stays
CW 16E
Accommodation expenditure: new employees
CW 16F
Accommodation expenditure: multiple workplaces
CW 17
Expenditure on account, and reimbursement, of employees
CW 17B
Relocation payments
CW 17C
Payments for overtime meals and certain other allowances
CW 17CB
Payments for certain work-related meals
CW 17CC
Payments for distinctive work clothing
CW 18
Allowance for additional transport costs
CW 19
Amounts derived during short-term visits
CW 20
Amounts derived by visiting entertainers including sportspersons
CW 21
Amounts derived by visiting crew of pleasure craft
CW 22
Amounts derived by overseas experts and trainees in New Zealand by government arrangement
CW 23
Income for military or police service in operational area
CW 24
Deferred military pay for active service
CW 25
Value of board for religious society members
CW 26
Jurors’ and witnesses’ fees
CW 26B
Exempt ESS
CW 26C
Meaning of exempt ESS
CW 26D
Meaning of employee
CW 26DB
Meaning of market value
CW 26E
Meaning of normal retiring age
CW 26F
Meaning of share
CW 26G
Meaning of trustee
Certain income of transitional resident
CW 27
Certain income derived by transitional resident
Income from living allowances, foreign superannuation, compensation, and government grants
CW 28
Pensions
CW 28B
Foreign superannuation withdrawal in initial period of residency
CW 28C
Foreign superannuation withdrawal exceeding given amount
CW 29
Reinvested amounts from foreign superannuation schemes in Australia
CW 29B
Amounts from Australian complying superannuation schemes reinvested in KiwiSaver schemes
CW 30
Annuities from Crown Bank Accounts
CW 31
Services for members and former members of Parliament
CW 32
Maintenance payments
CW 33
Allowances and benefits
CW 34
Compensation payments
CW 35
Personal service rehabilitation payments
CW 36
Scholarships and bursaries
CW 37
Film production grants
[Repealed]
Income of certain entities
CW 38
Public authorities
CW 38B
Public purpose Crown-controlled companies
CW 39
Local authorities
CW 40
Local and regional promotion bodies
CW 40B
Te Urewera Board
CW 40C
Te Pou Tupua
CW 41
Charities: non-business income
CW 42
Charities: business income
CW 42B
Community housing trusts and companies
CW 43
Charitable bequests
CW 44
Friendly societies
CW 45
Funeral trusts
CW 46
Bodies promoting amateur games and sports
CW 47
TAB NZ and racing clubs
CW 48
Income from conducting gaming-machine gambling
CW 49
Bodies promoting scientific or industrial research
CW 50
Veterinary services bodies
CW 51
Herd improvement bodies
CW 52
Community trusts
CW 52B
Disability support services
CW 53
Distributions from complying trusts
CW 54
Foreign-sourced amounts derived by trustees
CW 55
Maori authority distributions
CW 55BA
Tertiary education institutions and subsidiaries
CW 55BAB
Rebate of fees paid by FIF
CW 55BB
Minors’ income, to limited extent
Partners and partnerships
CW 55B
Amounts of exempt income for partners
Income from certain activities
CW 56
Non-resident aircraft operators
CW 57
Non-resident company involved in exploration and development activities
CW 58
Disposal of companies’ own shares
CW 59
New Zealand companies operating in Niue
CW 59B
Income of and distributions by certain international funds
CW 59C
Life reinsurance claims from reinsurer outside New Zealand
CW 60
Stake money
CW 61
Providing standard-cost household service
CW 62
Interest paid under the KiwiSaver Act 2006
CW 62B
Voluntary activities
CW 62C
Income from foreign-currency loans used for disallowed residential property
CW 63
Avoidance arrangements
CW 64
Exemption under other Acts
Restructuring under New Zealand Railways Corporation Restructuring Act 1990
CW 65
New Zealand Railways Corporation restructure: exempt income
Subpart CX—Excluded income
Goods and services tax
CX 1
Goods and services tax
Fringe benefits
Introductory provisions
CX 2
Meaning of fringe benefit
CX 3
Excluded income
CX 4
Relationship with assessable income
CX 5
Relationship with exempt income
Fringe benefits
CX 6
Private use of motor vehicle
CX 7
Employer or associated person treated as having right to use vehicle under arrangement
CX 8
Private use of motor vehicle: use by more than 1 employee
CX 9
Subsidised transport
CX 10
Employment-related loans
CX 11
Employment-related loans: loans by life insurers
CX 12
Services for members and former members of Parliament
CX 13
Contributions to superannuation schemes
CX 14
Contributions to sickness, accident, or death benefit funds
CX 15
Contributions to funeral trusts
CX 16
Contributions to life or health insurance
CX 17
Benefits provided to employees who are shareholders or investors
CX 18
Benefits provided to associates of both employees and shareholders
Exclusions and limitations
CX 19
Benefits provided instead of allowances
CX 19B
Transport in vehicle other than motor vehicle
CX 19C
Certain public transport
CX 19D
Certain self-powered and low-powered vehicles and vehicle-share services
CX 20
Benefits to enable performance of duties
CX 21
Business tools
CX 22
Benefits to non-executive directors
CX 23
Benefits provided on premises
CX 24
Benefits related to health or safety
CX 25
Benefits provided by charitable organisations
CX 26
Non-liable payments
CX 27
Assistance with tax returns
CX 28
Accommodation
CX 29
Entertainment
CX 30
Distinctive work clothing
CX 31
Contributions to income protection insurance
CX 32
Services provided to superannuation fund
CX 33
Goods provided at discount by third parties
CX 33B
Benefits for members of Parliament
Definitions
CX 34
Meaning of emergency call
CX 35
Meaning of employee share loan
CX 36
Meaning of private use
CX 37
Meaning of unclassified benefit
CX 38
Meaning of work-related vehicle
Insurance
CX 39
Life insurers and fully reinsured persons
[Repealed]
CX 40
Superannuation fund deriving amount from life insurance policy
CX 41
Resident insurance underwriters
Petroleum mining
CX 42
Disposal of ownership interests in controlled petroleum mining entities
CX 43
Farm-out arrangements for mining operations
Mineral mining
CX 44
Disposal of mining shares
[Repealed]
CX 45
Disposal of mining shares acquired with reinvestment profit
[Repealed]
CX 46
Repayment of loans made from reinvestment profit
[Repealed]
Government grants
CX 47
Government grants to businesses
CX 48
Amounts remitted as condition of new start grant
[Repealed]
CX 48B
Issue of post-1989 forest land units
[Repealed]
Government funding of film and television
CX 48C
Government funding additional to government screen production payments
Research and development
CX 48D
Tax credits for expenditure on research and development
[Repealed]
Superannuation and savings
CX 49
Employer’s superannuation contributions
CX 50
Tax credits for KiwiSaver and complying superannuation funds
CX 50B
Contributions to retirement savings schemes
Farming, forestry, or fishing
CX 51
Income equalisation schemes
Emissions units under Climate Change Response Act 2002
CX 51B
Disposal of pre-1990 forest land emissions units
CX 51C
Disposal of fishing quota emissions units
Environmental restoration
CX 52
Refund from environmental restoration account
Inflation-indexed instruments
CX 53
Credits for inflation-indexed instruments
Share-lending arrangements and excepted financial arrangements
CX 54
Share-lending collateral under share-lending arrangements
CX 54B
Transfers of emissions units under certain excepted financial arrangements
Portfolio investment income
CX 55
Proceeds from disposal of investment shares
CX 55B
Proceeds from disposal of certain shares and financial arrangements
CX 56
Attributed income of certain investors in multi-rate PIEs
CX 56B
Distributions to investors in multi-rate PIEs
CX 56C
Distributions to investors by listed PIEs
CX 57
Credits for investment fees
Foreign investment income
CX 57B
Amounts derived during periods covered by calculation methods
Minors’ beneficiary income
CX 58
Amounts derived by minors from trusts
CX 59
Taxable distributions from non-complying trusts
Transactions between companies in consolidated groups
CX 60
Intra-group transactions
Avoidance arrangements
CX 61
Avoidance arrangements
Partners and partnerships
CX 62
Amounts of excluded income for partners
Look-through companies
CX 63
Dividends derived after company ceased to be look-through company
Financial instruments and hybrid mismatches
CX 64
Income from financial instrument
Subpart CZ—Terminating provisions
CZ 1
Grandparented shares under employee share schemes
CZ 2
Mining company’s 1970–71 tax year
[Repealed]
CZ 3
Exchange variations on 8 August 1975
CZ 4
Mineral mining: company making loan before 1 April 1979
[Repealed]
CZ 5
Exempt interest: overseas money lent to government or local or public authority before 29 July 1983
CZ 6
Commercial bills before 31 July 1986
CZ 7
Primary producer co-operative companies: 1987–88 income year
CZ 8
Farm-out arrangements for petroleum mining before 16 December 1991
CZ 9
Available capital distribution amount: 1965 and 1985–1992
CZ 9B
Available capital distribution amount: 1988 to 2010
[Repealed]
CZ 10
Transitional relief for calculation of attributed repatriation dividends: 2 July 1992
[Repealed]
CZ 11
Recovery of deductions for software acquired before 1 April 1993
CZ 12
General insurance with risk period straddling 1 July 1993
CZ 13
Treatment of units and interests in unit trusts and group investment funds on issue as at 1 April 1996
CZ 14
Treatment of superannuation fund interests in group investment funds on 1 April 1999
CZ 15
Accident insurance contracts before 1 July 2000
CZ 16
Interest payable to exiting company: 2001
CZ 17
Dividend of exiting company: 2001
CZ 18
Benefit provider approved within 6 months of 25 November 2003
CZ 19
Community trust receipts in 2004–05 or 2005–06 tax year
CZ 20
Disposal of personal property lease asset under specified lease
CZ 21
Superannuation fund loans made to members before 1 April 1989
CZ 21B
Optional treatment of withdrawals from foreign superannuation schemes not included in return or assessed before 1 April 2014
CZ 22
Geothermal wells between 31 March 2003 and 17 May 2006
CZ 23
Insurance or compensation for buildings replaced as revenue account property affected by Canterbury earthquakes
[Repealed]
CZ 23
Employee benefits for Canterbury earthquake relief: exempt income
CZ 23B
Employee benefits for North Island flooding events: exempt income
CZ 24
Employee benefits for Canterbury earthquake relief: not fringe benefits
CZ 24B
Employee benefits for North Island flooding events relief: not fringe benefits
CZ 25
Land and buildings as revenue account property affected by Canterbury earthquakes and replaced—insurance or compensation, Government purchase
CZ 25B
Land and buildings as revenue account property affected by Hurunui/Kaikōura earthquakes and replaced—insurance or compensation
CZ 26
Land and buildings affected by Canterbury earthquakes—sections CB 9 to CB 11 and CB 14 overridden for Crown purchases
CZ 27
Prior bad debt deductions clawback
CZ 28
Transitional provision for mineral mining: previously appropriated mining expenditure
CZ 29
Accommodation expenditure: Canterbury earthquake relief
CZ 29B
Accommodation expenditure: North Island flooding events
CZ 30
Transitional provision: application of certain accommodation provisions
CZ 31
Accommodation expenditure: New Zealand Defence Force
CZ 32
Treatment of certain petroleum storage facilities
CZ 33
Transitional exception for accommodation provided to ministers of religion
CZ 34
Income arising from tax accounting provision for aircraft engine overhauls
CZ 35
Treatment of backdated payments for social rehabilitation: 2008–09 to 2017–18 income years
[Repealed]
CZ 35
Amounts derived by Te Kōwhatu Tū Moana
CZ 36
Treatment of backdated payments for social rehabilitation: 2008–09 to 2017–18 income years
CZ 37
Income equalisation schemes
CZ 38
Disposals of trading stock to non-associates without business purpose
CZ 39
Disposal within 5 years: bright-line test for residential land: acquisition on or after 29 March 2018
CZ 40
Main home exclusion for bright-line: acquisition on or after 29 March 2018
Part D Deductions
Subpart DA—General rules
DA 1
General permission
DA 2
General limitations
DA 3
Effect of specific rules on general rules
DA 4
Treatment of amount of depreciation loss
DA 5
Treatment of expenditure for commercial fit-out
[Repealed]
Subpart DB—Specific rules for expenditure types
Taxes and other amounts
DB 1
Taxes, other than GST, and penalties
DB 2
Goods and services tax
DB 3
Determining tax liabilities
DB 3B
Use of money interest
DB 4
Chatham Islands dues
DB 4B
Fees to purchase funds in tax pooling accounts
Financing costs
DB 5
Transaction costs: borrowing money for use as capital
DB 6
Interest: not capital expenditure
DB 7
Interest: most companies need no nexus with income
DB 8
Interest: money borrowed to acquire shares in group companies
DB 9
Interest incurred on money borrowed to acquire shares in qualifying companies
DB 10
Interest or expenditure connected to profit-related debentures
DB 10B
Interest or expenditure connected to stapled debt security
Financial arrangements adjustments
DB 11
Negative base price adjustment
DB 12
Base price adjustment under old financial arrangements rules
DB 13
Repayment of debt in certain circumstances
DB 14
Security payment
DB 15
Sureties
Share-lending arrangements and excepted financial arrangements
DB 16
Share-lending collateral under share-lending arrangements
DB 17
Replacement payments and imputation credits under share-lending arrangements
DB 17B
Transfers of emissions units under certain excepted financial arrangements
Premises or land costs
DB 18AA
Square metre rate method
DB 18A
Ring-fenced allocations: disposal of residential land within 5 years
[Repealed]
DB 18AB
Deduction cap: disposal of residential land within 5 years to associated persons
[Repealed]
DB 18
Transaction costs: leases
DB 19
Expenses in application for resource consent
DB 20
Destruction of temporary building
DB 20B
Consideration for agreement to grant, renew, extend, or transfer leasehold estate or licence
DB 20C
Consideration for agreement to surrender leasehold estate or terminate licence
DB 21
Amounts paid for non-compliance with covenant for repair
DB 22
Amounts paid for non-compliance and change in use
DB 22B
Amounts paid for commercial fit-out for building
Revenue account property
DB 23
Cost of revenue account property
DB 23B
Revenue account property: certain intra-group transactions
DB 23C
Revenue account property: cost of some residential land reduced
DB 24
Share losses
DB 25
Cancellation of shares held as revenue account property
DB 26
Amount from profit-making undertaking or scheme and not already in income
DB 27
Amount from major development or division and not already in income
DB 28
Amount from land affected by change and not already in income
DB 29
Apportionment when land acquired with other property
DB 30
Cost of certain minerals
Bad debts
DB 31
Bad debts
DB 32
Bad debts owed to estates
Research and development
DB 33
Scientific research
DB 34
Research or development
DB 35
Some definitions
DB 36
Patent expenses
DB 37
Expenses in application for patent or design registration
DB 38
Patent rights: devising patented inventions
DB 39
Patent rights acquired before 1 April 1993
DB 40
Patent applications or patent rights acquired on or after 1 April 1993
DB 40BA
Expenses in application for plant variety rights
Unsuccessful software development
DB 40B
Expenditure in unsuccessful development of software
Corporate gifting
DB 41
Charitable or other public benefit gifts by company
Theft and bribery
DB 42
Property misappropriated by employees or service providers
DB 43
Making good loss from misappropriation by partners
DB 44
Restitution of stolen property
DB 45
Bribes
Pollution control
DB 46
Avoiding, remedying, or mitigating effects of discharge of contaminant or making of noise
Repayments
DB 47
Payments for remitted amounts
DB 48
Restrictive covenant breached
Matching rules: revenue account property, prepayments, and deferred payments
DB 49
Adjustment for opening values of trading stock, livestock, and excepted financial arrangements
DB 50
Adjustment for prepayments
DB 51
Adjustment for deferred payment of employment income
Adjustments for leases that become finance leases
DB 51B
Adjustments for leases that become finance leases
IFRS leases
DB 51C
NZ IFRS 16 leases
Change to accounting practice
DB 52
Adjustment for change to accounting practice
Investment income
DB 53
Attributed PIE losses of certain investors
DB 54
No deductions for fees relating to interests in multi-rate PIEs
DB 54B
Expenditure incurred by foreign investment PIEs
DB 54C
Certain expenditure incurred by foreign PIE equivalents
Exempt income
DB 55
Expenditure incurred in deriving exempt dividend
[Repealed]
Use of motor vehicle under certain arrangements
DB 56
Expenditure incurred in operating motor vehicle under agreement or arrangement affected by section CX 7
Payments to spouses, civil union partners, or de facto partners
DB 57
Payments to spouses, civil union partners, or de facto partners other than for services
Hybrid and branch mismatches of deductions and income from multi-jurisdictional arrangements
DB 57B
Matching of deductions and income from multi-jurisdictional arrangements
Avoidance and non-market transactions
DB 58
Adjustment for avoidance arrangements
DB 59
Market value substituted
Emissions units and liabilities under Climate Change Response Act 2002
DB 60
Acquisition of emissions units
DB 60B
Liabilities for emissions
DB 61
Surrender of certain emissions units for post-1989 forest land emissions
Legal expenses
DB 62
Deduction for legal expenses
Miscellaneous company administration costs
DB 63
Expenses in paying dividends
DB 63B
Periodic company registration fees
DB 63C
Meetings of shareholders
Capital contributions
DB 64
Capital contributions
DB 65
Allowance for certain commercial buildings
[Repealed]
Feasibility expenditure
DB 66
Feasibility expenditure: spread deduction
DB 67
Feasibility expenditure: immediate deduction
Utilities distribution assets
DB 68
Amounts paid for utilities distribution assets
Subpart DC—Employee or contractor expenditure
DC 1
Lump sum payments on retirement
DC 2
Pension payments to former employees
DC 3
Pension payments to former partners
DC 3B
Payments to working owners
DC 4
Payments to working partners
DC 5
Payments to spouses, civil union partners, or de facto partners: services
DC 6
Contributions to employees’ benefit funds
DC 7
Contributions to employees’ superannuation schemes
DC 8
Attribution of personal services
DC 9
Restrictive covenants or exit inducements
DC 10
Disposal of business: transferred employment income obligations
DC 11
Transfers of employment income obligations to associates
DC 12
Loans to employees under share purchase schemes
[Repealed]
DC 13
Criteria for approval of share purchase schemes: before period of restriction ends
[Repealed]
DC 14
Criteria for approval of share purchase schemes: when period of restriction ends
[Repealed]
DC 15
Some definitions
[Repealed]
Subpart DD—Entertainment expenditure
DD 1
Entertainment expenditure generally
DD 2
Limitation rule
DD 3
When limitation rule does not apply
DD 4
Employment-related activities
DD 5
Promoting businesses, goods, or services
DD 6
Entertainment as business or for charitable purpose
DD 7
Entertainment outside New Zealand
DD 8
Entertainment that is income or fringe benefit
DD 9
Relationship with fringe benefit tax rules
DD 10
Interpretation: reimbursement and apportionment
DD 11
Some definitions
Subpart DE—Motor vehicle expenditure
Introductory provisions
DE 1
What this subpart does
DE 2
Deductions for business use
DE 2B
Election to use kilometre rate method or costs method
DE 3
Methods for calculating proportion of business use
DE 4
Default method for calculating proportion of business use
Actual records
DE 5
Actual records
Logbook
DE 6
Using logbook for test period
DE 7
Logbook requirements
DE 8
Logbook term
DE 9
Inadequate logbook
DE 10
Variance during logbook term
DE 11
Replacement vehicles
Kilometre rates
DE 12
Kilometre rate method
Subpart DF—Government grants, funding, and compensation
DF 1
Government grants to businesses
DF 2
Repayment of grant-related suspensory loans
DF 3
Identifying expenditure for purposes of sections DF 1 and DF 2
DF 4
Payments for social rehabilitation
DF 5
Government funding additional to government screen production payments
Subpart DG—Expenditure related to use of certain assets
Introductory provisions
DG 1
What this subpart does
DG 2
Application of this subpart
DG 3
Meaning of asset for this subpart
DG 4
Meaning of private use for this subpart
DG 5
Meaning and treatment of interest expenditure for this subpart
DG 6
Associated persons: company rule modified
When assets held simply
DG 7
Expenditure related to income-earning use
DG 8
Expenditure limitation rule
DG 9
Apportionment formula
When assets held in corporate structures
DG 10
Interest expenditure rules
DG 11
Interest expenditure: close companies
DG 12
Interest expenditure: group companies
DG 13
Interest expenditure: corporate shareholders
DG 14
Interest expenditure: non-corporate shareholders
Quarantined expenditure
DG 15
Quarantined expenditure rules
DG 16
Quarantined expenditure when asset activity negative
DG 17
Allocation of amounts quarantined under section DG 16
DG 18
Quarantined expenditure: group companies and shareholders
DG 19
Allocation of amounts quarantined under section DG 18
Certain modifications to rules
DG 20
When income cannot be separately attributed
DG 21
Opting out of treatment under this subpart
DG 22
Application of rules to part years
Subpart DH—Interest incurred in relation to certain land
DH 1
Interest related to certain land
DH 2
When this subpart applies
DH 3
When this subpart applies: companies
DH 4
When this subpart does not apply: exemptions for new builds, development, social or emergency or transitional housing, and council housing
DH 5
Key terms
DH 6
Interposed residential property percentage
DH 7
Grandparented residential interest
DH 8
Deduction not allowed
DH 9
Exception to limited denial of deductions: loans denominated in foreign currencies
[Repealed]
DH 10
Limited denial of deductibility: simplified calculation of interest affected
DH 11
Denied amounts: treatment upon disposal of disallowed residential property
DH 12
Valuation
Subpart DN—Attributed losses from foreign equity
Attributed controlled foreign company (CFC) loss
DN 1
Attributed controlled foreign company loss
DN 2
When attributed CFC loss arises
DN 3
Calculation of attributed CFC loss
DN 4
Ring-fencing cap on deduction
Foreign investment fund (FIF) loss
DN 5
Foreign investment fund loss
DN 6
When FIF loss arises
DN 7
Calculation of FIF loss
DN 8
Ring-fencing cap on deduction: attributable FIF income method
DN 9
Treatment of certain costs incurred in acquiring FIF interests
Subpart DO—Farming and aquacultural business expenditure
Farming
DO 1
Enhancements to land
DO 2
Plantings for erosion, shelter, and water protection purposes
DO 3
Trees on farms
DO 4
Improvements to farm land
DO 5
Expenditure on land: planting of listed horticultural plants
DO 6
Expenditure on land: horticultural replacement planting
DO 7
Accounting for expenditure on listed horticultural plants under sections DO 5 and DO 6
DO 8
Meaning of planting and plot
DO 9
Meaning of replaced area fraction
DO 10
Farming or horticulture expenditure of lessor or sublessor
DO 11
Improvement destroyed or made useless
DO 11B
Entering partners’ livestock deduction
[Repealed]
Aquaculture
DO 12
Improvements to aquacultural business
DO 13
Improvement destroyed or made useless
Subpart DP—Forestry expenditure
DP 1
Expenditure of forestry business
DP 2
Plant or machinery
DP 3
Improvements to forestry land
DP 4
Improvement destroyed or made useless
DP 5
Forestry encouragement agreement: deductions
DP 6
Forestry encouragement agreement: no deduction
DP 7
Land contouring: no deduction
DP 8
Forestry business on land acquired from the Crown, Maori owners, or holding company: no deduction
DP 9
Cost of acquiring timber: forestry business on land acquired from the Crown, Maori owners, or holding company
DP 9B
Treaty of Waitangi claim settlements: rights to take timber
DP 10
Cost of acquiring timber or right to take timber: other cases
DP 11
Cost of timber
Subpart DQ—Income equalisation schemes and environmental restoration accounts schemes
DQ 1
Main income equalisation scheme
DQ 2
Adverse event income equalisation scheme
[Repealed]
DQ 3
Thinning operations income equalisation scheme
DQ 4
Environmental restoration accounts scheme
Subpart DR—Life insurance business expenditure
DR 1
Policyholder base allowable deduction of life insurer
DR 2
Shareholder base allowable deduction of life insurer
DR 3
Life reinsurance premiums to reinsurer outside New Zealand
DR 4
Life insurers’ claims
Subpart DS—Film industry expenditure
DS 1
Acquiring film rights
DS 2
Film production expenditure
DS 2B
Expenditure when film or film right intended for disposal
DS 3
Clawback of deductions for film reimbursement schemes
DS 4
Meaning of film reimbursement scheme
Subpart DT—Petroleum mining expenditure
Petroleum exploration expenditure
DT 1A
Ring-fenced allocations
DT 1
Petroleum exploration expenditure
DT 2
Arrangement for petroleum exploration expenditure and disposal of property
DT 3
Acquisition of privileges and permits
DT 4
Acquisition of exploratory material
Petroleum development expenditure
DT 5
Petroleum development expenditure
DT 6
Expenditure on petroleum mining assets
DT 7
Exploratory well expenditure
DT 7B
Resuming commercial production: petroleum development expenditure
DT 8
Acquisition of certain petroleum mining assets
DT 9
Disposal of petroleum mining asset to associate
DT 10
Disposal of petroleum mining asset outside association
DT 11
Association ending
Other expenditure
DT 12
Damage to assets
DT 13
Disposal of ownership interests in controlled petroleum mining entities
DT 14
Farm-out arrangements
DT 15
Persons associated with petroleum miner
DT 16
Decommissioning
General provisions
DT 17
Attribution of expenditure
DT 18
Replacement permits
DT 19
Partnership interests and disposal of part of asset
DT 20
Petroleum mining operations outside New Zealand
Subpart DU—Mineral mining expenditure
DU 1
Mining expenditure: prospecting and exploration expenditure
DU 2
Mining expenditure: rehabilitation expenditure
DU 3
Acquisition of land for mining operations
DU 4
Acquisition of mineral mining assets
DU 5
Farm-out arrangements
DU 6
Deduction for certain mining expenditure spread over assumed life of mine
DU 7
Deduction for certain mining expenditure spread on basis of units of production
Classes of mining expenditure
DU 8
Classes of mineral mining expenditure
DU 9
Some definitions
DU 10
Meaning of mining exploration expenditure
DU 11
Meaning of mining development expenditure: exclusion of operational expenditure
DU 12
Meaning of mining rehabilitation expenditure
Subpart DV—Expenditure specific to certain entities
Superannuation funds
DV 1
Publicising superannuation funds
DV 2
Transfer of expenditure to master fund
DV 3
Formula for calculating maximum deduction
DV 4
Carry forward of expenditure
DV 4B
Carry forward of expenditure by member funds investing in portfolio investment entities
Other entities
DV 5
Investment funds: transfer of expenditure to master funds
DV 6
Formula for calculating maximum deduction
DV 7
Carry forward of expenditure
DV 8
Non-profit organisations
DV 9
Trusts
DV 10
Building societies
DV 11
Distribution to member of co-operative company, excluded from being dividend
DV 12
Maori authorities: donations
DV 13
Group companies
DV 14
Amalgamated company: expenditure on improvements for farming, horticultural, aquacultural, and forestry businesses
DV 15
Amalgamated companies: property passing on resident’s restricted amalgamation
DV 16
Consolidated groups: intra-group transactions
DV 17
Consolidated groups: expenditure or loss incurred by group companies
DV 18
Statutory producer boards and co-operative companies
DV 18B
Cost base for shares when debt remitted within economic group
DV 19
Association rebates
Partners and partnerships
DV 20
Partners
DV 21
Losses for QCs entering partnership regime
Look-through companies
DV 22
Owners of look-through companies
DV 23
Losses for QCs entering look-through companies rules
Sole traders
DV 24
Losses for QCs becoming sole traderships
DV 25
Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests
Reinstatement of R&D tax losses
DV 26
Deduction for reinstatement of R&D tax losses
Employee share schemes
DV 27
Employee share schemes
DV 28
Exempt employee share schemes
Subpart DW—Expenditure specific to certain industries
DW 1
Airport operators
DW 2
Bloodstock racing
DW 3
Non-resident general insurers and shippers
DW 3B
Lloyd’s of London: deductions for life insurance business
DW 4
Deduction for general insurance outstanding claims reserve
DW 5
Aircraft operators: aircraft engines and aircraft engine overhauls
DW 6
Aircraft operators: payments and adjustments under finance leases
Subpart DX—Other expenditure
DX 1
Testamentary annuities
DX 2
Tax credits: conduit financing arrangements
[Repealed]
DX 3
Tax credits: supplementary dividend holding companies
[Repealed]
Subpart DZ—Terminating provisions
DZ 1
Commercial bills before 31 July 1986
DZ 2
Life insurers acquiring property before 1 April 1988
DZ 3
Petroleum mining: development expenditure from 1 October 1990 to 15 December 1991
DZ 4
Expenditure on abandoned exploratory well before 16 December 1991
DZ 5
Farm-out arrangements for petroleum mining before 16 December 1991
DZ 6
Partnership interests and disposal of part of asset before 16 December 1991
DZ 7
Petroleum mining operations outside New Zealand before 16 December 1991
DZ 8
Acquiring patent rights before 1 April 1993
DZ 9
Premium paid on land leased before 1 April 1993
DZ 10
General insurance with risk period straddling 1 July 1993
DZ 11
Film reimbursement scheme on or before 30 June 2001
DZ 12
Mineral mining: 1954–2005
[Repealed]
DZ 13
Enhancements to land unamortised at end of 2004–05 year
DZ 14
Deductions under specified leases
DZ 15
Patent applications before 1 April 2005
DZ 16
Geothermal wells between 31 March 2003 and 17 May 2006
DZ 17
Expenditure on improvements to aquacultural business before 1995–96 income year
DZ 18
Expenditure on improvements to forestry land before 1995–96 income year
DZ 19
Attributed CFC loss carried back under section EZ 32C
[Repealed]
DZ 20
Expenditure incurred while income-earning activity interrupted by Canterbury earthquake
DZ 21
Transfer in 2013–14 income year of assets to which subpart DG applies
DZ 22
Aircraft maintenance: aircraft engines acquired before 2017–18 income year
DZ 23
Aircraft maintenance: tax accounting provisions for expenditure incurred after 2016–17 income year
Part E Timing and quantifying rules
Subpart EA—Matching rules: revenue account property, prepayments, and deferred payments
EA 1
Trading stock, livestock, and excepted financial arrangements
EA 2
Other revenue account property
EA 3
Prepayments
EA 4
Deferred payment of employment income
Subpart EB—Valuation of trading stock (including dealer’s livestock)
Introductory provisions
EB 1
When this subpart applies
EB 2
Meaning of trading stock
EB 3
Valuation of trading stock
EB 4
Trading stock valuation methods
EB 5
Transfers of trading stock within wholly-owned groups
Standard valuation
EB 6
Cost
EB 7
Cost allocation: cost-flow method
EB 8
Cost allocation: budgeted method or standard cost method
EB 9
Discounted selling price
EB 10
Replacement price
EB 11
Market selling value
EB 12
Valuing closing stock consistently
Low-turnover valuation
EB 13
Low-turnover valuation
EB 14
Low-turnover valuation methods
EB 15
Cost for low-turnover traders
EB 16
Cost allocation: cost-flow method for low-turnover traders
EB 17
Costs: manufactured or produced stock of low-turnover traders
EB 18
Costs: other stock of low-turnover traders
EB 19
Discounted selling price for low-turnover traders
EB 20
Replacement price for low-turnover traders
EB 21
Market selling value for low-turnover traders
EB 22
Valuing closing stock consistently for low-turnover traders
Low value trading stock
EB 23
Valuing closing stock under $10,000
Disposal of business assets
EB 24
Apportionment on disposal of business assets that include trading stock
Subpart EC—Valuation of livestock
Introductory provisions
EC 1
Application of this subpart
EC 2
Valuation of livestock
EC 3
Livestock valuation methods
EC 4
Transfers of livestock within wholly-owned groups
EC 4B
Compulsory use of herd scheme method for associated persons
EC 4C
Value and timing of transfers
EC 5
Transfer of livestock because of self-assessed adverse event
Valuation of specified livestock
EC 6
Application of sections EC 7 to EC 27
EC 7
Valuation methods
EC 8
Restrictions arising from use of herd scheme
EC 9
Restrictions on use of national standard cost scheme
EC 10
Restrictions on use of cost price method
EC 11
Restrictions on making of elections
EC 12
Interests in livestock
EC 13
Changes in partnership interests
Herd scheme
EC 14
Herd scheme
EC 15
Determining national average market values
EC 16
Valuation under herd scheme
EC 17
Herd value ratio
EC 18
Inaccurate herd value ratio
EC 19
Chatham Islands adjustment to herd value
EC 20
Herd livestock disposed of before values determined
EC 21
Herd livestock on death before values determined
[Repealed]
National standard cost scheme
EC 22
National standard cost scheme
EC 23
Determining national standard costs
EC 24
Methods for determining costs using national standard cost scheme
Other methods
EC 25
Cost price, replacement price, or market value
EC 26
Bailee’s treatment of livestock
Partnerships: cost price and national standard cost scheme
EC 26B
Entering partners’ cost base
Definitions
EC 27
Some definitions
Valuation of non-specified livestock
EC 28
Application of sections EC 29 to EC 31
EC 29
Determining standard values
EC 30
Closing value methods
EC 31
Enhanced production
Valuation of high-priced livestock
EC 32
Application of sections EC 33 to EC 37
EC 33
Determining depreciation percentages
EC 34
General rule
EC 35
Livestock reaching national average market value and livestock no longer used for breeding
EC 36
Immature livestock and recently acquired livestock
EC 37
Bailment
Valuation of bloodstock
EC 38
Application of sections EC 39 to EC 48
EC 39
First income year in breeding business
EC 39B
Stud-founding bloodstock and related terms
EC 39C
Setting and publication of national minimum price threshold
EC 40
Later income years in breeding business
EC 41
Reduction: bloodstock not previously used for breeding in New Zealand other than as shuttle stallions
EC 42
Reduction: bloodstock previously used for breeding in New Zealand
EC 43
Accident, birth deformity, or infertility
EC 44
Other bloodstock
EC 45
Residual value of bloodstock
EC 46
Use of bloodstock for racing
EC 47
Change of use of bloodstock in course of business
EC 47B
Removal of high-priced bloodstock from New Zealand after earlier deductions
EC 47C
When prospective breeders treated as being in breeding business
EC 47D
Change of prospective bloodstock breeders’ expectation or intention after earlier deductions
EC 47E
Prospective breeders commencing actual breeding businesses
EC 48
Replacement breeding stock
Subpart ED—Valuation of excepted financial arrangements
ED 1
Valuation of excepted financial arrangements
ED 1B
Valuation of emissions units issued for zero price
ED 2
Transfers of certain excepted financial arrangements within wholly-owned groups
ED 2B
Transfers to shareholders by ASX-listed Australian company of shares in subsidiary
ED 3
Part-year tax calculations for transfers: general insurance OCR
ED 4
Valuation of certain excepted financial arrangements denominated in foreign currency
Subpart EE—Depreciation
Introductory provision
EE 1
What this subpart does
Meaning of own
EE 2
Nature of ownership of item
EE 3
Ownership of goods subject to reservation of title
EE 4
Ownership of lessee’s improvements: lessee
EE 5
Ownership of lessee’s improvements: other person
Meaning of depreciable property
EE 6
What is depreciable property?
EE 7
What is not depreciable property?
EE 8
Election that property not be depreciable
How amounts of depreciation loss and depreciation recovery income are calculated
EE 9
Description of elements of calculation
EE 10
Calculation rule: item temporarily not available
EE 11
Calculation rule: income year in which item disposed of
Methods
EE 12
Depreciation methods
Amount of depreciation loss under diminishing value method or straight-line method
EE 13
Application of sections EE 14 to EE 19
EE 14
Diminishing value or straight-line method: calculating amount of depreciation loss
EE 15
Amount of adjusted tax value
EE 16
Amount resulting from standard calculation
EE 17
Amount resulting from petroleum-related depreciable property calculation
EE 18
Cost: change from diminishing value to straight-line method
EE 18B
Cost: some depreciable intangible property
EE 19
Cost: fixed life intangible property
Amount of depreciation loss under pool method
EE 20
Application of sections EE 21 to EE 24
EE 21
Pool method: calculating amount of depreciation loss
EE 22
Cases affecting pool
EE 23
Combined pools
EE 24
Property ceasing to qualify for pool
EE 25
Depreciation loss for plant variety rights application granted in 2005–06 or later income year
Depreciation rates
EE 26
Setting of economic depreciation rate
EE 27
Economic rate for certain depreciable property
EE 28
Economic rate for buildings
EE 29
Economic rate for certain aircraft and motor vehicles
EE 30
Economic rate for plant, equipment, or building, with high residual value
EE 31
Annual rate for item acquired in person’s 1995–96 or later income year
EE 32
Election in relation to certain depreciable property acquired on or after 1 April 2005
EE 33
Annual rate for fixed life intangible property
EE 34
Annual rate for patent granted in 2005–06 or later income year
EE 34B
Annual rate for design registrations
EE 35
Special rate or provisional rate
EE 36
Using economic rate or provisional rate instead of special rate
Improvements, items of low value, or items no longer used
EE 37
Improvements
EE 38
Items of low value
EE 39
Items no longer used
Transfers of depreciable property: associated persons and certain amalgamations
EE 40
Transfer of depreciable property on or after 24 September 1997
EE 41
Transfer of depreciable property on certain amalgamations on or after 14 May 2002
EE 42
Transfer of radiocommunications licence right on or after 24 September 1997
EE 43
Transfer of depreciable intangible property on or after 1 July 1997
Disposals and similar events
EE 44
Application of sections EE 48 to EE 51
EE 45
Consideration for purposes of section EE 44
EE 46
Items for purposes of section EE 44
EE 47
Events for purposes of section EE 44
EE 48
Effect of disposal or event
EE 49
Amount of depreciation recovery income when item partly used for business
EE 50
Amount of depreciation loss when item partly used to produce income
EE 51
Amount of depreciation recovery income when lost or stolen items recovered
EE 52
Amount of depreciation recovery income when compensation received
EE 53
Unused geothermal well brought into use
Interpretation provisions
EE 54
Cost: GST
Adjusted tax value
EE 55
Meaning of adjusted tax value
EE 56
Formula
EE 57
Base value in section EE 56 when none of sections EE 58, EE 59, and EZ 22(1) applies
EE 58
Base value in section EE 56 when no previous deduction
EE 59
Base value in section EE 56 when property is petroleum-related depreciable property
EE 60
Total deductions in section EE 56
Definitions
EE 61
Meaning of annual rate
EE 62
Meaning of depreciable intangible property
EE 63
Meaning of estimated useful life
EE 64
Meaning of excluded depreciable property
EE 65
Meaning of maximum pooling value
EE 66
Meaning of poolable property
EE 67
Other definitions
Subpart EF—Taxes and levies
EF 1
Fringe benefit tax
EF 2
Employer’s superannuation contribution tax
EF 3
Accident compensation levies and premiums
EF 4
Use of money interest payable by Commissioner
EF 5
Use of money interest payable by person
EF 6
Different tax years
[Repealed]
Subpart EG—Recognition of accounting treatment
EG 1
Election to use balance date used in foreign country
EG 2
Adjustment for changes to accounting practice
EG 3
Allocation of income, deductions, and tax credits by portfolio tax rate entity
[Repealed]
Subpart EH—Income equalisation schemes
Introductory provisions
EH 1
Income equalisation schemes
EH 2
Deposits to be paid into Crown Bank Account
Main income equalisation scheme
Application
EH 3
Persons to whom main income equalisation scheme applies
Deposits and accounts
EH 4
Main deposit
EH 5
Main income equalisation account
Interest
EH 6
Interest on deposits in main income equalisation account
Deduction
EH 7
Deduction of deposit
Refunds: automatic
EH 8
Refund of excess deposit
EH 9
Income does not include excess deposit
EH 10
Refund at end of 5 years
EH 11
Income when refund given at end of 5 years
Refunds: on application
EH 12
Application for refund by person, trustee of estate, Official Assignee, or liquidator
EH 13
Refund on application
EH 14
Income when refund given on application
EH 15
Refund for development or recovery
EH 16
Income when refund given for development or recovery
EH 17
Refund on retirement
EH 18
Income when refund given on retirement, and election to allocate amount to earlier year
EH 19
Refund on death
EH 20
Income when refund given on death
EH 21
Income when refund given on death, and election to allocate amount to earlier year
EH 22
Income when refund given on death, and election to allocate amount to later year or years
EH 23
Refund on bankruptcy
EH 24
Income when refund given on bankruptcy
EH 25
Refund on liquidation
EH 26
Income when refund given on liquidation
Refunds: general provisions
EH 27
Amendment of assessment
EH 28
Minimum refund
EH 29
Deposits from which refunds come
Tax credit
EH 30
When person entitled to tax credit
EH 31
Kind and amount of refund that entitles person to tax credit
EH 32
Kind of person entitled to tax credit
EH 33
Amount of tax credit
Definitions
EH 34
Meaning of income from forestry
EH 35
Meaning of main maximum deposit
EH 36
Other definitions
Adverse event income equalisation scheme
Application
EH 37
Persons to whom adverse event income equalisation scheme applies
[Repealed]
Deposits and accounts
EH 38
Adverse event deposit
[Repealed]
EH 39
Adverse event income equalisation account
[Repealed]
Interest
EH 40
Interest on deposits in adverse event income equalisation account
[Repealed]
Deduction
EH 41
Deduction of deposit
[Repealed]
Refunds: automatic
EH 42
Refund of excess deposit
[Repealed]
EH 43
Income does not include excess deposit
[Repealed]
Refunds: on application
EH 44
Application for refund by person, trustee of estate, Official Assignee, or liquidator
[Repealed]
EH 45
Refund on application
[Repealed]
EH 46
Income when refund given on application
[Repealed]
EH 47
Refund on retirement
[Repealed]
EH 48
Income when refund given on retirement, and election to allocate amount to earlier year
[Repealed]
EH 49
Refund on death
[Repealed]
EH 50
Income when refund given on death
[Repealed]
EH 51
Income when refund given on death, and election to allocate amount to earlier year
[Repealed]
EH 52
Income when refund given on death, and election to allocate amount to later year or years
[Repealed]
EH 53
Refund on bankruptcy
[Repealed]
EH 54
Income when refund given on bankruptcy
[Repealed]
EH 55
Refund on liquidation
[Repealed]
EH 56
Income when refund given on liquidation
[Repealed]
Refunds: general provisions
EH 57
Amendment of assessment
[Repealed]
EH 58
Minimum refund
[Repealed]
EH 59
Deposits from which refunds come
[Repealed]
Transfers
EH 60
Transfer of deposit
[Repealed]
Definitions
EH 61
Meaning of adverse event maximum deposit
[Repealed]
EH 62
Other definitions
[Repealed]
Thinning operations income equalisation scheme
Application
EH 63
Persons to whom thinning operations income equalisation scheme applies
Deposits and accounts
EH 64
Thinning operations deposit
EH 65
Thinning operations income equalisation account
Interest
EH 66
Interest on deposits in thinning operations income equalisation account
Deductions
EH 67
Deduction of deposit
Refunds: automatic
EH 68
Refund of excess deposit
EH 69
Income does not include excess deposit
Refunds: on application
EH 70
Application for refund by person or liquidator
EH 71
Refund on application
EH 72
Income when refund given on application
EH 73
Refund for development or recovery
EH 74
Income when refund given for development or recovery
EH 75
Refund on liquidation
EH 76
Income when refund given on liquidation
Refunds: general provisions, and tax credits
EH 77
Sections of main income equalisation scheme that apply to thinning operations income equalisation scheme
Definitions
EH 78
Meaning of thinning operations maximum deposit
EH 79
Other definitions
Subpart EI—Spreading of specific income
Farming and forestry
EI 1
Spreading backward of income from timber
Inflation-indexed instruments
EI 2
Interest from inflation-indexed instruments
Intellectual property
EI 3
Assigning or granting copyright
EI 4
Spreading income from patent rights
Land
EI 4B
Consideration for agreement to grant, renew, extend, or transfer leasehold estate or licence
EI 5
Amount paid to lessor for non-compliance with covenant for repair
EI 6
Amount paid for non-compliance: when lessor ceases to own land
EI 7
Leases: income derived in anticipation
EI 8
Disposal of land to the Crown
Shareholder-employees
EI 9
Matching rule for employment income of shareholder-employee
Subpart EJ—Spreading of specific expenditure
Farming and forestry
EJ 1
Spreading backward of deductions for costs of timber
EJ 2
Spreading forward of deductions for repairs to fishing boats
EJ 3
Spreading forward of fertiliser expenditure
Films
EJ 4
Expenditure incurred in acquiring film rights in feature films
EJ 5
Expenditure incurred in acquiring film rights in films other than feature films
EJ 6
Certification of New Zealand films
EJ 7
Film production expenditure for New Zealand films having no large budget film grant
EJ 8
Film production expenditure for other films having no large budget film grant
EJ 9
Avoidance arrangements
Leases
EJ 10
Personal property lease payments
EJ 10B
IFRS leases
EJ 11
Amount paid by lessee for non-compliance with covenant for repair
Petroleum mining
EJ 12
Petroleum development expenditure: default allocation rule
EJ 12B
Petroleum development expenditure: reserve depletion method
EJ 13
Permanently ceasing petroleum mining operations
EJ 13B
Dry well drilled
EJ 13C
Well not producing
EJ 14
Spreading deduction backwards
[Repealed]
EJ 15
Disposal of petroleum mining asset
EJ 16
Disposal of petroleum mining asset to associate
EJ 17
Partnership interests and disposal of part of asset
EJ 18
Petroleum mining operations outside New Zealand
Definitions
EJ 19
Meaning of offshore development
[Repealed]
EJ 20
Meaning of petroleum mining development
Mineral mining
EJ 20B
Certain mining expenditure spread over assumed life of mine
EJ 20C
Length of spreading period
EJ 20D
Measurement of assumed life of mine and application to rate
EJ 20E
Certain mining expenditure spread on basis of units of production
Superannuation contributions
EJ 21
Contributions to employees’ superannuation schemes
Research, development, and resulting market development
EJ 22
Deductions for market development: product of research, development
EJ 23
Allocation of deductions for research, development, and resulting market development
Aircraft engine overhauls
EJ 24
Allocation of expenditure on aircraft engine overhauls
EJ 25
Allocation of expenditure on aircraft engine overhauls: election by IFRS user
EJ 26
Allocation of expenditure on aircraft engine overhauls: election by operator of single aircraft
EJ 27
Disposal of aircraft engine or aircraft
Subpart EK—Environmental restoration accounts
EK 1
Payment to Crown Bank Account
EK 2
Persons who may make payment to environmental restoration account
EK 3
Payments to environmental restoration account
EK 4
Environmental restoration account
EK 5
Details to be provided with payment to environmental restoration account
EK 6
Interest on payments to environmental restoration account
EK 7
Deduction for payment
EK 8
Deduction for transfer
EK 9
Refund of payment if excess, lacking details
EK 10
Certain refunds not income
EK 11
Application for refund
EK 12
Refund if application or excess balance
EK 13
Income when refund given on application
EK 14
Application for transfer
EK 15
Transfer on application
EK 16
Transfer on death, bankruptcy, or liquidation
EK 17
Minimum refund or transfer
EK 18
Payments from which refunds come
EK 19
Environmental restoration account of amalgamating company
EK 20
Environmental restoration account of consolidated group company
EK 21
Notices in electronic format
EK 22
Meaning of maximum payment
EK 23
Other definitions
Subpart EL—Allocation of deductions for excess residential land expenditure
Introductory provisions
EL 1
Outline of subpart: general
EL 2
Outline of subpart: specific provisions
EL 3
Definitions for this subpart
Allocation rules for residential rental property
EL 4
Allocation of deductions for loss-making residential rental properties
EL 5
When residential portfolios sold
EL 6
Choosing to apply rules on property-by-property basis
EL 7
When property A sold
EL 8
Treatment of previously transferred amounts on fully-taxed disposals
[Repealed]
Exclusions from rules
EL 9
Main home exclusion
EL 10
Exclusion for land held on revenue account
EL 11
Exclusion for property held by certain persons and entities
EL 12
Exclusion for mixed-use assets
EL 13
Exclusion for property provided as employee accommodation
Application of rules by certain entities
EL 14
Continuity rules for companies
EL 15
Transfers between companies in wholly-owned groups
Interposed entities
EL 16
Interests in residential land-rich entities
EL 17
Calculations for section EL 16
EL 18
Modifications when entities transparent
EL 19
Valuation of assets
Allocation rules for bright-line disposals of land
EL 20
Allocation of deductions related to bright-line disposals of residential land
Subpart EM—Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests
EM 1
Australian non-attributing shares and attributing FDR method interests
EM 2
Who does this subpart apply to?
EM 3
What hedges does this subpart apply to?
EM 4
Elections
EM 5
Fair dividend rate hedge portions: hedge-by-hedge methods
EM 5B
Fair dividend rate hedge portions: portfolio method
EM 6
Income and expenditure for fair dividend rate hedge portions
EM 7
Quarterly test of fair dividend rate hedge portions
EM 8
Some definitions
Subpart EW—Financial arrangements rules
Introductory provisions
EW 1
What this subpart does
EW 2
Relationship of financial arrangements rules with other provisions
Meaning of financial arrangement and excepted financial arrangement
EW 3
What is a financial arrangement?
EW 4
What is not a financial arrangement?
EW 5
What is an excepted financial arrangement?
EW 6
Relationship between financial arrangements and excepted financial arrangements
EW 7
Change from private or domestic purpose
EW 8
Election to treat certain excepted financial arrangements as financial arrangements
Application of financial arrangements rules
EW 9
Persons to whom financial arrangements rules apply
EW 10
Financial arrangements to which financial arrangements rules apply
EW 11
What financial arrangements rules do not apply to
Calculation and allocation of income and expenditure over financial arrangement’s term
EW 12
When use of spreading method required
EW 13
When use of spreading method not required
EW 14
What spreading methods do
EW 15
What is included when spreading methods used
EW 15B
Applying IFRSs to financial arrangements
EW 15C
Preparing and reporting methods
EW 15D
IFRS financial reporting method
EW 15E
Determination alternatives
EW 15F
Expected value method
EW 15G
Modified fair value method
EW 15H
Mandatory use of some determinations
EW 15I
Mandatory use of yield to maturity method for some arrangements
EW 16
Yield to maturity method or alternative
EW 17
Straight-line method
EW 18
Market valuation method
EW 19
Choice among some spreading methods
EW 20
Determination method or alternative
EW 21
Financial reporting method
EW 22
Default method
EW 23
Failure to use method for financial reporting purposes
EW 24
Consistency of use of spreading method
EW 25
Consistency of use of straight-line method and market valuation method
EW 25B
Consistency of use of IFRS method
EW 26
Change of spreading method
EW 27
Spreading method adjustment formula
Calculation and allocation of income and expenditure when rights and obligations under financial arrangement cease
EW 28
How base price adjustment calculated
EW 29
When calculation of base price adjustment required
EW 30
When calculation of base price adjustment not required
EW 31
Base price adjustment formula
Consideration
Consideration when financial arrangement involves property or services
EW 32
Consideration for agreement for sale and purchase (ASAP) of property or services, hire purchase agreement, specified option, or finance lease
EW 33
Consideration for hire purchase agreement or finance lease
EW 33B
Foreign ASAPs: designated FX hedges
EW 33C
Consideration in foreign currency: some agreements for sale and purchase
EW 33D
Foreign ASAPs: contingencies for business combinations
EW 34
Consideration in foreign currency
EW 35
Value relevant for non-financial arrangements rule
Consideration treated as paid to person
EW 36
Consideration when person exits from rules: accrued entitlement
EW 37
Consideration when person enters rules: accrued obligation
EW 38
Consideration when disposal for no, or inadequate, consideration
EW 39
Consideration affected by unfavourable factors
Consideration treated as paid by person
EW 40
Consideration when person exits from rules: accrued obligation
EW 41
Consideration when person enters rules: accrued entitlement
EW 42
Consideration when acquisition for no, or inadequate, consideration
EW 43
Consideration when debt disposed of at discount to associate of debtor
EW 44
Consideration when debt forgiven for natural love and affection
EW 45
Consideration when debtor released from obligation
EW 46
Consideration when debtor released as condition of new start grant
[Repealed]
EW 46B
Consideration when party changes from fair value method
EW 46C
Consideration when debt remitted within economic group
EW 46D
Consideration when insolvent company’s debt repaid with consideration received for issuing shares
Consideration when legal defeasance has occurred
EW 47
Legal defeasance
Consideration for cessation of LTCs and dissolution of partnerships
EW 47B
Cessation of LTCs and dissolution of partnerships
Consideration when anti-avoidance provision applies
EW 48
Anti-avoidance provisions
Income and deduction provisions specifically related to financial arrangements
EW 49
Income and deduction when debt disposed of at discount to associate of debtor
EW 49B
Guarantees for associated persons
EW 50
Income when debt forgiven to trustee
EW 51
Deduction for security payment
Treatment of original share acquired under financial arrangement
EW 52
Share supplier under share-lending arrangement
EW 52B
Excepted financial arrangements involving pre-1990 forest land emissions units
One kind of avoidance
EW 53
Adjustment required
Application of financial arrangements rules to cash basis persons
EW 54
Meaning of cash basis person
EW 55
Effect of being cash basis person
EW 56
Natural person
[Repealed]
EW 57
Thresholds
EW 58
Financial arrangements, income, and expenditure relevant to criteria
EW 59
Exclusion by Commissioner
EW 60
Trustee of deceased’s estate
EW 61
Election to use spreading method
EW 62
When and how calculation of cash basis adjustment required
EW 63
Cash basis adjustment formula
Subpart EX—Controlled foreign company and foreign investment fund rules
Controlled foreign company (CFC) rules
When is a company a controlled foreign company?
EX 1
Meaning of controlled foreign company
Calculation of person’s control interest
EX 2
Four categories for calculating control interests
EX 3
Control interest: total of direct, indirect, and associated person interests
EX 4
Limits to requirement to include associated person interests
EX 5
Direct control interests
EX 6
Direct control interests include options and similar rights
EX 7
Indirect control interests
Calculation of person’s income interest
EX 8
Income interests: total of direct and indirect interests
EX 9
Direct income interests
EX 10
Indirect income interests
EX 11
Options and similar rights in certain cases
EX 12
Reduction of total income interests
EX 13
Income interests of partners
[Repealed]
Ten percent threshold and variations in income interest level
EX 14
Attribution: 10% threshold, not PIE
EX 15
Associates and 10% threshold
EX 16
Income interests for certain purposes
EX 17
Income interest if variations within period
Calculation of attributed CFC income or loss
EX 18A
Scheme for finding person’s attributed CFC income or loss
EX 18
Formula for calculating attributed CFC income or loss
EX 19
Taxable distribution from non-complying trust
EX 20
Reduction in attributed CFC loss
Attributable CFC amount and net attributable CFC income or loss
EX 20B
Attributable CFC amount
EX 20C
Net attributable CFC income or loss
EX 20D
Adjustment of cost fraction for excessively debt funded CFC
EX 20E
Relative debt-asset ratio for CFC
Calculation of branch equivalent income or loss
EX 21
Attributable CFC amount and net attributable CFC income or loss: calculation rules
Non-attributing active CFCs
EX 21B
Non-attributing active CFCs
Tests for non-attributing active CFCs
EX 21C
Applicable accounting standards for section EX 21E
EX 21D
Non-attributing active CFC: default test
EX 21E
Non-attributing active CFC: test based on accounting standard
EX 21F
Part-period calculations
Non-attributing Australian CFCs
EX 22
Non-attributing Australian CFCs
EX 23
Tax concession grey list CFCs
[Repealed]
Change of residence of companies
EX 24
Companies moving to or from New Zealand
Change of CFC’s balance date
EX 25
Change of CFC’s balance date
Ownership measurement concession
EX 26
Use of quarterly measurement
Anti-avoidance rule: stapled stock
EX 27
Anti-avoidance rule: stapled stock
Foreign investment fund (FIF) rules
What is a foreign investment fund?
EX 28
Meaning of FIF
Attributing interests in FIFs
EX 29
Attributing interests in FIFs
EX 30
Direct income interests in FIFs
EX 31
Exemption for ASX-listed Australian companies
EX 32
Exemption for Australian unit trusts with adequate turnover or distributions
EX 33
Exemption for Australian regulated superannuation savings
EX 34
CFC rules exemption
EX 35
Exemption for interest in FIF resident in Australia
EX 36
Venture capital company emigrating to grey list country: 10-year exemption
EX 37
Grey list company owning New Zealand venture capital company: 10-year exemption
EX 37B
Share in grey list company acquired under venture investment agreement
EX 38
Exemptions for employee share schemes
EX 39
Terminating exemption for grey list company with numerous New Zealand shareholders
[Repealed]
EX 40
Foreign exchange control exemption
EX 41
Income interest of non-resident or transitional resident
EX 42
New resident’s accrued superannuation entitlement exemption
[Repealed]
EX 42B
Interests in foreign superannuation scheme other than FIF superannuation interests
EX 43
Non-resident’s pension or annuity exemption
Calculation of FIF income or loss
EX 44
Five calculation methods
EX 45
Exclusion of amounts of death benefit
EX 46
Limits on choice of calculation methods
EX 47
Method required for certain non-ordinary shares
EX 47B
Method required for shares subject to certain returning share transfers
EX 48
Default calculation method
EX 49
Accounting profits method
[Repealed]
EX 50
Attributable FIF income method
EX 51
Comparative value method
EX 52A
Fair dividend rate method: use of different forms
EX 52
Fair dividend rate annual method
EX 53
Fair dividend rate periodic method
EX 54
Fair dividend rate method and cost method: when periods affected by share reorganisations
EX 55
Deemed rate of return method
EX 56
Cost method
EX 57
Conversion of foreign currency amounts: most methods
EX 58
Additional FIF income or loss if CFC owns FIF
Relationship with other provisions in Act
EX 59
Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method
EX 60
Top-up FIF income: deemed rate of return method
EX 61
Top-up FIF income: 1 April 1993 uplift interests
Changing calculation method
EX 62
Limits on changes of method
EX 63
Consequences of changes in method
Cases of entry into and exit from FIF rules
EX 64
Migration of persons holding FIF interests
EX 65
Changes in application of FIF exemptions
EX 66
Entities emigrating from New Zealand
EX 66B
Entities ceasing to be FIFs
EX 67
FIF rules first applying to interest on or after 1 April 2007
EX 67B
Revaluation of inherited interests in grey list companies
Measurement of cost
EX 68
Measurement of cost
Change of FIF’s balance date
EX 69
Change of FIF’s balance date
Market value rules
EX 70
Market value of life policy and superannuation entitlements
EX 71
Non-market transactions in FIF interests
Commissioner’s default assessment power
EX 72
Commissioner’s default assessment power
Election relating to CFC or FIF
EX 73
Election that CFC not non-attributing active CFC or FIF not non-attributing active FIF
Subpart EY—Life insurance rules
Introductory provisions
EY 1
What this subpart does
EY 2
Policyholder base
EY 3
Shareholder base
EY 4
Apportionment of income of particular source or nature, and of tax credits
EY 5
Part-year tax calculations
EY 6
Actuarial advice and guidance
EY 7
Meaning of claim
EY 8
Meaning of life insurance
EY 9
Meaning of life insurance policy
EY 10
Meaning of life insurer
EY 11
Superannuation schemes providing life insurance
EY 12
Meaning of life reinsurance
EY 13
Meaning of life reinsurance policy
EY 14
Life insurance and life reinsurance: how sections relate
Policyholder base
Non-participation policies
EY 15
Policyholder base income: non-participation policies
EY 16
Policyholder base allowable deductions: non-participation policies
EY 16B
Policyholder base allowable deductions: consideration for investment management services
Profit participation policies
EY 17
Policyholder base income: profit participation policies
EY 18
Policyholder base allowable deductions: profit participation policies
Shareholder base
Non-participation policies
EY 19
Shareholder base income: non-participation policies
EY 19B
Shareholder base income: consideration credited for investment management services
EY 20
Shareholder base allowable deductions: non-participation policies
Profit participation policies
EY 21
Shareholder base income: profit participation policies
EY 22
Shareholder base allowable deductions: profit participation policies
Non-participation policies: reserves
EY 23
Reserving amounts for life insurers: non-participation policies
EY 24
Outstanding claims reserving amount: non-participation policies not annuities
EY 25
Premium smoothing reserving amount: non-participation policies not annuities
EY 26
Unearned premium reserving amount: non-participation policies not annuities
EY 27
Capital guarantee reserving amount: non-participation policies not annuities
Shareholder base other profit: profit participation policies
EY 28
Shareholder base other profit: profit participation policies that are existing business
EY 29
Shareholder base other profit: profit participation policies that are new business
Transitional adjustments and annuities
EY 30
Transitional adjustments: life risk
EY 31
Annuities
EY 32
Mortality profit formula: when partial reinsurance exists
[Repealed]
EY 33
Mortality profit formula: individual result may be negative only in some cases
[Repealed]
EY 34
Mortality profit formula: negative result
[Repealed]
EY 35
How discontinuance profit is calculated
[Repealed]
EY 36
Discontinuance profit for income year
[Repealed]
EY 37
Discontinuance profit formula (existing policies)
[Repealed]
EY 38
Discontinuance profit formula (new policies)
[Repealed]
EY 39
Discontinuance profit formula (existing policies): when partial reinsurance exists
[Repealed]
EY 40
Discontinuance profit formula (new policies): when partial reinsurance exists
[Repealed]
EY 41
Discontinuance profit formulas: individual result may never be negative
[Repealed]
EY 42
How policyholder income is calculated
[Repealed]
EY 43
Policyholder income formula
[Repealed]
EY 43B
Policyholder income formula: FDR adjustment
[Repealed]
EY 43C
Policyholder income formula: PILF adjustment
[Repealed]
EY 44
Policyholder income formula: when partial reinsurance exists
[Repealed]
EY 45
Policyholder income formula: when life insurance business transferred
[Repealed]
EY 46
Income from disposal of property
[Repealed]
EY 47
Deductions for disposal of property
[Repealed]
Non-resident life insurers
EY 48
Non-resident life insurers with life insurance policies in New Zealand
EY 49
Non-resident life insurer becoming resident
Subpart EZ—Terminating provisions
Life insurance
EZ 1
Life insurers acquiring property before 1 April 1988
EZ 2
Deductions for disposal of property: 1982–83 and 1989–90 income years
Petroleum mining
EZ 3
Petroleum development expenditure from 1 October 1990 to 15 December 1991
Livestock
EZ 4
Valuation of livestock bailed or leased as at 2 September 1992
EZ 4B
Cattle destroyed because of Mycoplasma bovis: spreading
EZ 5
Reduction: bloodstock not previously used for breeding in New Zealand: pre-1 August 2006
EZ 6
Reduction: broodmare previously used for breeding in New Zealand: pre-1 August 2006
EZ 6B
National minimum price threshold for 2019 calendar year
Patent rights
EZ 7
Acquiring patent rights before 1 April 1993
Leases of land
EZ 8
Premium paid on land leased before 1 April 1993
Depreciation
EZ 9
Pool method for items accounted for by globo method for 1992–93 income year
EZ 10
Pool items accounted for by globo method for 1992–93 income year
EZ 11
Amounts of depreciation recovery income and depreciation loss for part business use up to 2004–05 income year
EZ 12
Amount of depreciation loss for item acquired from associated person on or before 23 September 1997
EZ 13
Annual rate for item acquired on or after 1 April 1993 and before end of person’s 1994–95 income year
EZ 14
Pre-1993 depreciation rate
EZ 15
Annual rate for excluded depreciable property: 1992–93 tax year
EZ 16
Amount of depreciation loss for plant or machinery additional to section EZ 15 amount
EZ 17
Additional amount of depreciation loss: between 16 December 1991 and 1 April 1994
EZ 18
Section EZ 17 amount of depreciation loss when items transferred between companies in wholly-owned group before 1 April 1993
EZ 19
Section EZ 17 amount of depreciation loss when person previously exempt from tax acquires item
EZ 20
Adjusted tax value for software acquired before 1 April 1993
EZ 21
Sections EE 45 and EE 47: permanent removal: allowance before 1 April 1995
EZ 22
Base value and total deductions in section EE 56: before 1 April 1995
EZ 23
Economic rate for plant or equipment acquired before 1 April 2005 and buildings acquired before 19 May 2005
EZ 23BA
Aircraft acquired before 2017–18 income year: adjusted tax value, base value, reduced; total deductions increased
EZ 23B
Property acquired after depreciable property affected by Canterbury earthquakes
EZ 23BB
Interest in property acquired after depreciable property affected by Canterbury earthquakes
EZ 23BC
Property acquired after depreciable property affected by Hurunui/Kaikōura earthquakes
EZ 23BD
Loss on disposal of grandparented structure
EZ 23C
Insurance for Canterbury earthquake damage of property: treatment as disposal and reacquisition
[Repealed]
EZ 23D
Insurance for Canterbury earthquake damage of property: limit on depreciation recovery income
[Repealed]
EZ 23E
Item treated as available for use if access restricted due to Canterbury earthquake
[Repealed]
EZ 23F
Insurance for Canterbury earthquake damage causing disposal: optional timing rule for income, deductions
[Repealed]
EZ 23G
Insurance for repairs of Canterbury earthquake damage: optional timing rule for income, deductions
[Repealed]
Definitions
EZ 24
Meaning of new asset
EZ 25
Meaning of New Zealand-new asset
EZ 26
Meaning of qualifying capital value
EZ 27
Meaning of qualifying improvement
EZ 28
Meaning of qualifying asset
Accident insurance
EZ 29
Private insurers under Accident Insurance Act 1998
EZ 30
Base premium for 1998–99 premium year under Accident Insurance Act 1998
Controlled foreign company and foreign investment fund rules
EZ 31
Disclosure restrictions on grey list CFCs before 2011–12
[Repealed]
EZ 32
Terminating exemption for grey list FIF investing in Australasian listed equities
[Repealed]
EZ 32B
Transitional rule for IFRS reporting
[Repealed]
EZ 32C
Treatment in section EX 20C of currency effects on CFC’s borrowing
[Repealed]
EZ 32D
Value of asset fraction: CFC with excessive debt funding and loan entered before 21 June 2012
EZ 32E
Change in section EX 20B for income of CFC insurer: interest on terminal tax
EZ 32F
Applicable accounting standard for section EX 21E: former generally accepted accounting practice without IFRS
EZ 32G
Person deriving pension from foreign superannuation scheme and returning as income before 1 April 2014
Old financial arrangements rules
EZ 33
Application of old financial arrangements rules
EZ 34
Election to apply financial arrangements rules in subpart EW
EZ 35
Accruals in relation to income and expenditure in respect of financial arrangements
EZ 36
Excepted financial arrangement that is part of financial arrangement
EZ 37
Cash basis holder
EZ 38
Income and expenditure where financial arrangement redeemed or disposed of
EZ 39
Forgiveness of debt
EZ 40
Accrued income written off
EZ 41
Disposal of debt to associate of debtor
EZ 42
Post facto adjustment
EZ 43
Variable principal debt instruments
EZ 44
Relationship with rest of Act
EZ 45
Application of old financial arrangements rules
EZ 46
Election to treat short term trade credit as financial arrangement
EZ 47
Election to continue to treat certain excepted financial arrangements as financial arrangements
EZ 48
Definitions
EZ 49
Determination of core acquisition price where consideration for property denominated in foreign currency
EZ 50
Rules for non-market transactions
EZ 51
Transitional adjustment when changing to financial arrangements rules
EZ 52
References to new rules include old rules
EZ 52B
Consistency of use of IFRS method: Determination G3 change allowed
EZ 52C
Change of spreading method: Determination G22 to Determination G22A
EZ 52D
Base price adjustment: financial arrangements to which Determination G22 and Determination G22A applied
Life insurance transitional adjustment: expected death strain
Expected death strain formulas
EZ 53
How expected death strain is calculated
EZ 54
Expected death strain formulas
EZ 55
Expected death strain formulas: option when more than 1 life insured
EZ 56
Expected death strain formula (life): when annuity payable on death
EZ 57
Expected death strain formulas: when annuity payable on survival to date or age specified in policy
EZ 58
Expected death strain formula (life): when partial reinsurance exists
Actuarial reserves
EZ 59
Meaning of actuarial reserves
EZ 60
Actuarial reserves: calculation
Entry to new life insurance regime: transitional and miscellaneous provisions
EZ 61
Allowance for cancelled amount: spreading
EZ 62
Reinsurance transition: life financial reinsurance may be life reinsurance
EZ 63
Disposal and acquisition upon entry
Restructuring under New Zealand Railways Corporation Restructuring Act 1990
EZ 64
New Zealand Railways Corporation restructure: purpose and initial amounts for tax purposes
EZ 65
Expenditure or loss incurred, and amounts derived
EZ 66
Prepayments
EZ 67
Leased assets
EZ 68
Definitions
IFRS financial reporting method
EZ 69
IFRS financial reporting method: interest-free and low-interest loans
EZ 69B
IFRS financial reporting method: equity or other comprehensive income
Damage from Canterbury earthquakes
EZ 70
Insurance for Canterbury earthquake damage of property: treatment as disposal and reacquisition
EZ 71
Insurance for Canterbury earthquake damage of property: limit on depreciation recovery income
EZ 72
Item treated as available for use if access restricted due to Canterbury earthquake
EZ 73
Insurance for Canterbury earthquake damage causing disposal: optional timing rule for income, deductions
EZ 74
Insurance for repairs of Canterbury earthquake damage: optional timing rule for income, deductions
EZ 75
Consideration for property or services: IFRS foreign ASAPs before 2014–15 income year
EZ 76
Consideration for property or services: non-IFRS foreign ASAPs before 2014–15 income year
EZ 77
Substituting debentures repeal: transitional rules
Damage from Hurunui/Kaikōura earthquakes
EZ 78
Insurance for Hurunui/Kaikōura earthquake damage of property: treatment as disposal and reacquisition
EZ 79
Insurance for Hurunui/Kaikōura earthquake damage of property: limit on depreciation recovery income
Income equalisation schemes
EZ 80
Refund of excess deposit in main income equalisation account as consequence of election under section EZ 4B
EZ 81
Refund of excess deposit in adverse event income equalisation account as consequence of election under section EZ 4B
Adverse event income equalisation accounts
EZ 82
Transfers of deposits when adverse event income equalisation accounts abolished
Part F Recharacterisation of certain transactions
Subpart FA—Recharacterisation of certain commercial arrangements
Introductory provision
FA 1
What this subpart does
Debentures and shares
FA 2
Recharacterisation of certain debentures
FA 2B
Stapled debt securities
FA 3
Recharacterisation of certain dividends: recovery of cost of shares held on revenue account
FA 4
Recharacterisation of shareholder’s base: company reacquiring share
Leases
FA 5
Assets acquired and disposed of after deduction of payments under lease
Finance leases
FA 6
Recharacterisation of amounts derived under finance leases
FA 7
Determining amount of loan
FA 8
Deductibility of expenditure under finance lease
FA 9
Treatment when lease ends: lessee acquiring asset
FA 10
Treatment when lease ends: lessor acquiring asset
FA 11
Adjustments for leases that become finance leases
FA 11B
Adjustments for certain operating leases
Hire purchase agreements
FA 12
Recharacterisation of amounts derived under hire purchase agreements
FA 13
Agreements recharacterised as sale with finance provided
FA 14
Deductibility of expenditure or loss under hire purchase agreement
FA 15
Treatment when agreement ends: seller acquiring property
FA 16
Treatment when agreement ends: when seller is cash basis person
FA 17
Treatment when agreement ends: when buyer is cash basis person
FA 18
Treatment of amounts paid in income years after agreement ends
Subpart FB—Transfers of relationship property
FB 1
When this subpart applies
FB 1B
Meaning of settlement of relationship property and property
FB 1C
Obligations for periods before and from transfer of property
FB 2
Personal property
FB 3A
Residential land
FB 3
Land acquired for certain purposes or under certain conditions
FB 4
Land under scheme for major development or division
FB 5
Disposal of land
FB 6
Timber or right to take timber
FB 7
Land with standing timber
FB 8
Patent applications and patent rights
FB 9
Financial arrangements rules
FB 10
Continuity provisions: shares and options
FB 10B
Look-through companies
FB 11
Pension payments to former employees
FB 12
Pension payments to former partners
FB 13
Trading stock
FB 14
Specified livestock
FB 15
Specified livestock valued under herd scheme
FB 16
Non-specified livestock
FB 17
High-priced livestock
FB 18
Bloodstock
FB 19
Leased assets
FB 20
Mining assets
[Repealed]
FB 21
Depreciable property
Subpart FC—Distribution, transmission, and gifts of property
Introductory provisions
FC 1
Disposals to which this subpart applies
FC 2
Transfer at market value
Exceptions for property transferred on death of person
FC 3
Property transferred to spouse, civil union partner, or de facto partner
FC 4
Property transferred to charities or to close relatives and others
FC 5
Land transferred to close relatives
FC 6
Forestry assets transferred to close relatives
FC 7
Transfer of prepaid property
FC 8
Transfer of certain financial arrangements
FC 9
Residential land transferred to executor, administrator, or beneficiary on death of person
Exceptions for residential land transferred to trustees of certain trusts or other entities
FC 9B
Residential land: certain transferors
FC 9C
Residential land: certain recipients
FC 9D
Residential land: certain recipients of Treaty of Waitangi land
Bankruptcy or insolvency of person under Insolvency Act 2006
FC 10
Transfers from person to Official Assignee under Insolvency Act 2006
Subpart FE—Interest apportionment on thin capitalisation
Introductory provisions
FE 1
What this subpart does
FE 2
When this subpart applies
FE 3
Interest apportionment for individuals
FE 4
Some definitions
FE 4B
Meaning of public project asset, public project debt, and public project participant debt
Interest apportionment rules
FE 5
Thresholds for application of interest apportionment rules
FE 6
Apportionment of interest by excess debt entity
FE 6B
Alternative apportionment of interest by some excess debt entities
FE 7
Apportionment of interest by reporting bank
FE 7B
Interest on public project debt for certain excess debt entities
FE 8
Measurement dates
FE 9
Elections
FE 10
Currency
FE 11
Disregarded increases or decreases in value
Calculations
FE 12
Calculation of debt percentages
FE 12B
Calculations for group for test and apportionment using interest-income ratio
FE 13
Financial arrangements entered into with persons outside group
Debt percentage of New Zealand group
FE 14
Consolidation of debts and assets
FE 15
Total group debt
FE 16
Total group assets
FE 16B
Total group non-debt liabilities
Debt percentage of worldwide group
FE 17
Consolidation of debts and assets
FE 18
Measurement of debts and assets of worldwide group
New Zealand banking group
FE 19
Banking group’s equity threshold
FE 20
Financial value and regulatory value
FE 21
Banking group’s New Zealand net equity
FE 22
Notional offshore investment
FE 23
Banking group’s funding debt
FE 24
Regulations
Determining membership of groups
New Zealand group
FE 25
New Zealand group for excess debt entity that is a company or non-resident owning body
FE 26
Identifying New Zealand parent
FE 27
Establishing companies under parent’s control
FE 28
Identifying members of New Zealand group
FE 29
Combining New Zealand groups owned by natural persons and trustees
FE 30
Ownership interests in companies outside New Zealand group
Worldwide group
FE 31
Worldwide group for corporate excess debt entity if not excess debt outbound company
FE 31B
Worldwide group for excess debt outbound companies
FE 31C
CFCs in worldwide group for natural persons or trustees described in section FE 2(1)(g)
FE 31D
Worldwide group for entity controlled by non-resident owning body or trustee
FE 32
Joint venture parties
New Zealand banking group
FE 33
New Zealand banking group
FE 34
Identifying ultimate parent
FE 35
Persons who may be excluded from banking groups
FE 36
Identifying members of New Zealand banking group in usual case
FE 36B
Identifying members of New Zealand banking group: Crown-owned, no interest apportionment
FE 37
Reporting bank for New Zealand banking group
Measuring ownership interests in companies
FE 38
Measuring ownership interests in companies
FE 39
Direct ownership interests
FE 40
Tiered ownership interests
FE 41
Treatment of associated persons’ interests
Subpart FF—Interest apportionment for conduit investment
[Repealed]
Introductory provisions
FF 1
What this subpart does
[Repealed]
FF 2
When interest apportionment rule applies
[Repealed]
FF 3
Steps required to determine treatment of excessive interest expenditure
[Repealed]
Interest apportionment rule
FF 4
Threshold for application of interest apportionment rule
[Repealed]
FF 5
Determination of excess amount of interest expenditure of group
[Repealed]
FF 6
Conduit tax relief
[Repealed]
FF 7
Surplus to foreign dividends
[Repealed]
Membership and debt percentages of foreign groups
FF 8
Identifying members of foreign groups
[Repealed]
FF 9
Calculating debt percentage of New Zealand foreign groups
[Repealed]
FF 10
Calculating debt percentage of consolidated foreign groups
[Repealed]
FF 11
Changes in foreign group membership
[Repealed]
Subpart FG—Treatment of notional loans to New Zealand branches of foreign banks
FG 1
When this subpart applies
FG 2
Notional loans
FG 3
Notional interest
Subpart FH—Hybrid and branch mismatches of deductions and income from multi-jurisdictional arrangements
FH 1
Subpart implements OECD recommendations for domestic law
FH 2
Order of application of provisions
FH 3
Payments under financial instruments producing deduction without income
FH 4
Receipts under financial instruments producing deduction without income
FH 5
Payments by New Zealand resident or New Zealand deducting branch producing deduction without income
FH 5B
Exception: when payee group not allowed deductions for supplies as prerequisites for payer supplies
FH 6
Receipts from non-resident or foreign deducting branch producing deduction without income
FH 7
Payments to person outside New Zealand producing deduction without income
FH 8
Expenditure or loss through hybrid entity or foreign deducting branch producing double deduction without double income
FH 9
Expenditure or loss of hybrid entity, or non-resident through deducting branch, producing double deduction without double income
FH 10
Expenditure or loss of dual resident company producing double deduction without double income
FH 11
Residents, or non-residents with deducting branches, having expenditure funding overseas hybrid mismatches
FH 12
Offset of mismatch amounts against surplus assessable income
FH 13
Election by borrower under financial arrangement
FH 14
Irrevocable election by owner of hybrid entity
FH 15
Definitions
Subpart FL—Emigration of resident companies
FL 1
What this subpart does
FL 2
Treatment of companies that become non-resident and their shareholders
FL 3
Treatment of companies that start being treated as non-resident and their shareholders
Subpart FM—Consolidated groups of companies
Introductory provisions
FM 1
What this subpart applies to
FM 2
Consolidation rules
FM 3
Liability of consolidated groups and group companies
FM 4
Limiting joint and several liability of group companies
FM 5
Liability when company leaves consolidated group
FM 6
Some general rules for treatment of consolidated groups
Calculating taxable income for consolidated group returns
Accounting generally
FM 7
Treatment of amounts derived or expenditure incurred
FM 8
Transactions between group companies: income
FM 9
Amounts that are company’s income
FM 10
Expenditure: intra-group transactions
FM 11
Expenditure: nexus with income derivation
FM 12
Expenditure when deduction would be denied to consolidated group
FM 13
Capital expenditure
FM 14
Part-year financial statements
Accounting for particular property
FM 15
Amortising property and revenue account property
FM 16
Land or business: certain farming or forestry expenditure
FM 17
Trading stock
FM 18
Financial arrangements: transfer from company A to company B
FM 19
Financial arrangements: transfer for fair and reasonable consideration
FM 20
Financial arrangements: transfer at market value
FM 21
Property transfers when companies leave consolidated groups
FM 22
Arrangements to avoid consolidation rules
FM 23
Arrangements for disposal of shares
Treatment of foreign dividends
FM 24
General treatment of foreign dividends
[Repealed]
FM 25
Reduction in payments for foreign dividends
[Repealed]
FM 26
Using tax losses to pay FDP
[Repealed]
FM 27
Refunds of FDP
[Repealed]
FM 28
Refund when consolidated group has loss
[Repealed]
FM 29
Treatment of credit balance in consolidated group’s FDP account
[Repealed]
FM 30
Application of certain provisions to consolidated groups
Membership of consolidated groups
Eligibility and restrictions
FM 31
Eligibility rules
FM 32
Restriction on membership of consolidated groups
FM 33
When membership is reduced
Nominated companies
FM 34
Nominated companies
Forming, joining, or leaving consolidated groups
FM 35
Forming consolidated group
FM 36
Joining existing consolidated group
FM 37
Leaving consolidated group
When membership starts and stops
FM 38
Notice requirements on forming or joining consolidated group
FM 39
Choosing to leave consolidated group
FM 40
Losing eligibility to be part of consolidated group
FM 41
No nominated company
FM 42
When company liquidated
Subpart FN—Imputation groups of companies
FN 1
When this subpart applies
FN 2
Imputation rules
FN 3
Liabilities of companies in imputation group
FN 4
Eligibility rules
FN 5
Imputation groups with reduced numbers
FN 6
Nominated companies
FN 7
Forming imputation groups
FN 8
Trans-Tasman imputation groups and resident imputation subgroups
FN 9
Joining existing imputation group
FN 10
When membership of imputation group ends
FN 11
Company choosing to leave imputation group
FN 12
Company no longer eligible or entitled to membership
FN 13
Imputation group with no nominated company
FN 14
Effect of liquidation of company
Subpart FO—Amalgamation of companies
Introductory provisions
FO 1
What this subpart does
FO 2
Amalgamation rules
FO 3
Resident’s restricted amalgamations
FO 4
Rights and obligations of amalgamated companies
FO 5
Amalgamations and remitted liabilities
Treatment of shares, income, expenditure, and bad debts
FO 6
Cancellation of shares
FO 7
Income derived after amalgamation
FO 8
Bad debts and expenditure or loss on resident’s restricted amalgamation
FO 9
Unexpired portion of prepaid expenditure
Property passing to amalgamated company on amalgamation
FO 10
When property passes on resident’s restricted amalgamation
FO 11
When property passes on amalgamation other than resident’s restricted amalgamation
FO 12
Financial arrangements: resident’s restricted amalgamation, companies in wholly-owned group
FO 13
Financial arrangements: resident’s restricted amalgamation, calculation method unchanged
FO 14
Financial arrangements: resident’s restricted amalgamation, other cases
FO 15
Financial arrangements: amalgamation other than resident’s restricted amalgamation
FO 16
Amortising property
FO 17
Land
Treatment of financial arrangements between amalgamating companies
FO 18
When amalgamating companies are parties to financial arrangement
FO 19
Calculation of outstanding accrued balance: consideration for discharge
FO 20
Calculation of outstanding accrued balance: amounts remitted
FO 21
When amalgamating companies are parties to financial arrangements: economic groups
Subpart FZ—Terminating provisions
Debentures
FZ 1
Treatment of interest payable under debentures issued before certain date
Leases
FZ 2
Effect of specified lease on lessor and lessee
FZ 3
Income of lessor under specified lease
FZ 4
Deductions under specified leases
Relationship property
FZ 5
Commercial bills
Estate property
FZ 6
Transitional valuation rule for estate property
Earthquake-affected group property
FZ 7
Valuation of group assets: insurance proceeds from Canterbury earthquake
Interest apportionment rules
FZ 8
Transition period for amendments to interest apportionment rules
Trading stock
FZ 9
Transfers of trading stock to non-associates, donee organisations, or public authorities
Part G Avoidance and non-market transactions
Subpart GA—Avoidance: general
GA 1
Commissioner’s power to adjust
GA 2
Commissioner’s power to adjust: fringe benefit tax
Subpart GB—Avoidance: specific
Arrangements involving dividend stripping
GB 1
Arrangements involving dividend stripping
Arrangements involving transfer pricing
GB 2
Arrangements involving transfer pricing
Arrangements involving tax losses
GB 3
Arrangements for carrying forward loss balances: companies’ ownership
GB 3BA
Arrangements for carrying forward loss balances: companies’ business activities
GB 3BAB
Arrangements to inject income into companies carrying forward loss balances
GB 3BAC
Arrangements to shift expenditure from companies carrying forward loss balances
GB 3B
Arrangements for carrying back net losses: companies
GB 4
Arrangements for grouping tax losses: companies
Arrangements to defeat continuity provisions
GB 5
Arrangements involving trust beneficiaries
Arrangements involving qualifying companies
GB 6
Arrangements involving qualifying companies
Arrangements involving controlled foreign companies
GB 7
Arrangements involving CFC control interests
GB 8
Arrangements involving attributed repatriation from CFCs
[Repealed]
GB 9
Temporary disposals of direct control or income interests
GB 10
Temporary acquisitions of direct control or income interests
GB 11
Temporary increases in totals for control interest categories
GB 12
Temporary reductions in totals for control interest categories
GB 13
When combination of changes reduces income
GB 14
When combination of changes increases loss
GB 15
CFC income or loss: arrangements related to quarterly measurement
GB 15BA
CFC income or loss: arrangements for inclusion of CFC in test group
GB 15B
Supplies affecting default test for non-attributing active CFC
GB 15C
Arrangements related to accounting test for non-attributing active CFC
Arrangements involving foreign investment funds
GB 16
FIF income or loss: arrangements for measurement day concessions
Arrangements involving film rights
GB 17
Excessive amounts for film rights or production expenditure
GB 18
Arrangements to acquire film rights or incur production expenditure
GB 19
When film production expenditure payments delayed or contingent
Arrangements involving petroleum and mineral mining
GB 20
Arrangements involving petroleum and mineral mining
Arrangements involving financial arrangements
GB 21
Dealing that defeats intention of financial arrangements rules
Arrangements involving trust beneficiary income
GB 22
Arrangements involving trust beneficiary income
Excessive remuneration
GB 23
Excessive remuneration to relatives
GB 24
Exemption for genuine contracts
GB 25
Close company remuneration to shareholders, directors, or relatives
GB 25B
Excessive effective look-through interests
Arrangements involving repatriation of commercial bills
GB 26
Arrangements involving repatriation of commercial bills
Attribution rule for income from personal services
GB 27
Attribution rule for income from personal services
GB 28
Interpretation of terms used in section GB 27
GB 29
Attribution rule: calculation
Arrangements involving restrictive covenants
GB 30
Arrangements to avoid taxation of restrictive covenant payments
Arrangements involving fringe benefit tax
GB 31
FBT arrangements: general
GB 32
Benefits provided to employee’s associates
Arrangements involving depreciation loss
GB 33
Arrangements involving depreciation loss
Arrangements involving imputation rules
GB 34
ICA arrangements for carrying amounts forward
GB 35
Imputation arrangements to obtain tax advantage
GB 36
Reconstruction of imputation arrangements to obtain tax advantage
GB 37
Arrangements for payment of dividend by other companies
GB 38
When sections GB 35 to GB 37 apply to consolidated groups
Arrangements involving foreign dividends
GB 39
FDP arrangements: general
[Repealed]
GB 40
BETA arrangements for carrying amounts forward
[Repealed]
GB 41
FDPA arrangements for carrying amounts forward
[Repealed]
Arrangements involving Maori authority credits
GB 42
Maori authority credit arrangements to obtain tax advantage
GB 43
Reconstruction of Maori authority credit arrangements to obtain tax advantage
Arrangements involving tax credits for families
GB 44
Arrangements involving tax credits for families
Arrangements involving money not at risk
GB 45
Arrangements involving money not at risk
GB 46
Deferral of surplus deductions from arrangements
GB 47
Calculation rules for sections GB 45 and GB 46
GB 48
Defined terms for sections GB 45 and GB 46
Arrangements involving returning share transfers
GB 49
Arrangements involving returning share transfers
Arrangements involving employee share schemes
GB 49B
Employee share schemes
Arrangements involving partners and owners
GB 50
Arrangements involving partners and owners
Arrangements involving interest apportionment rules
GB 51
Proportionality between amount of debt and ownership interests
GB 51B
Increases or decreases in value
Arrangements involving residential land
GB 52
Arrangements involving residential land: companies’ shares
GB 53
Arrangements involving residential land: trusts
Interest incurred in relation to certain land
GB 53B
Interposed residential property percentage: increases or decreases in value
GB 53C
On-lending at lower rate
Arrangements involving establishments and non-resident businesses
GB 54
Arrangements involving establishments
Arrangements involving tax credits for charitable or other public benefit gifts
GB 55
Arrangements involving tax credits for charitable or other public benefit gifts
Arrangements involving research and development tax credits
GB 56
Arrangements involving research and development tax credits
Subpart GC—Market value substituted
Disposals of trading stock or similar property
GC 1
Disposals of trading stock at below market value
GC 2
Disposals of timber rights or standing timber
GC 3
Disposals by life insurers
GC 3B
Disposals of emissions units
GC 4
Disposals and acquisitions of FIF attributing interests
GC 4B
Disposals of ETS units at below market value
[Repealed]
Leases
GC 5
Leases for inadequate rent
Transfer pricing arrangements
GC 6
Purpose and application of rules and nature of arrangements
GC 7
Excess amount payable by person
GC 8
Insufficient amount receivable by person
GC 9
Compensating arrangement: person paying less than arm’s length amount
GC 10
Compensating arrangement: person receiving more than arm’s length amount
GC 11
Applications for matching treatment
GC 12
Effect on person’s withholding obligations
GC 13
Calculation of arm’s length amounts
GC 14
Definitions for sections GC 6 to GC 13
Cross-border related borrowing
GC 15
Aspects of loan adjusted for application of sections
GC 16
Credit rating of borrower: other than insuring or lending person
GC 17
Credit rating of borrower: insuring or lending person
GC 18
Loan features disregarded by rules for transfer pricing arrangements
GC 19
Sections GC 15 to GC 18 and financial arrangements entered before application period
Purchase price allocation
GC 20
Effect of purchase price allocation agreement
GC 21
Purchase price allocation required: no agreement
Subpart GZ—Terminating provisions
GZ 1
Limitation on section GB 20: petroleum and mineral mining arrangements
GZ 2
Arrangements involving cancellation of conduit tax relief credits
[Repealed]
GZ 3
Donations of trading stock for relief of Canterbury earthquakes
GZ 4
Disposals of trading stock to donee organisations or public authorities
GZ 5
Disposals of trading stock to non-associates
Part H Taxation of certain entities
Subpart HA—Qualifying companies (QC)
Introductory provisions
HA 1
What this subpart does
HA 2
Meaning of qualifying company
HA 3
Meaning of loss-attributing qualifying company
[Repealed]
HA 4
Conditions applying
Qualifying company status
HA 5
Elections to become qualifying company
HA 6
Corporate requirements
HA 7
Shareholding requirements
HA 7B
Grandparenting requirement
HA 8
Shareholders’ personal liability
HA 8B
No CFC income interests or FIF direct income interests of 10% or more
HA 9
Limit on foreign non-dividend income
HA 10
Nature of LAQC shares
[Repealed]
HA 11
When requirements no longer met: qualifying companies
HA 11B
When requirements no longer met: LAQCs
[Repealed]
HA 12
Avoidance arrangements
[Repealed]
Treatment of profits, dividends, and tax losses
HA 13
Qualifying companies’ distributions
HA 14
Dividends paid by qualifying companies
HA 15
Fully imputed distributions
HA 16
Dividends paid by qualifying companies to trustee shareholders
HA 17
Dividends derived by qualifying companies
HA 18
Treatment of dividends when qualifying company status ends
HA 19
Credit accounts and dividend statements
HA 20
Attribution of tax losses
[Repealed]
HA 21
Loss balances not carried forward
HA 22
Group companies using tax losses
HA 23
Treatment of tax losses on amalgamation
Special tax matters for loss-attributing qualifying companies
HA 24
Treatment of tax losses other than certain foreign losses
[Repealed]
HA 25
Treatment of certain foreign losses
[Repealed]
HA 26
Attribution when balance dates differ
[Repealed]
HA 27
Attribution when loss results in reduction in value of shares
[Repealed]
Elections: qualifying companies
HA 28
Elections by trustee shareholders
HA 29
Elections by majority shareholders
HA 30
When elections take effect
HA 31
Revocation of directors’ elections
HA 32
Revocation of shareholders’ elections: by notice
HA 33
Revocation of shareholders’ elections: by event
HA 33B
Transitional rules for look-through companies, partnerships, and sole traderships
HA 34
Period of grace following death of shareholder
HA 35
Period of grace following revocation of election
HA 36
Period of grace following revocation of joint election
HA 37
Period of grace for new shareholder
Elections: loss-attributing qualifying companies
HA 38
Elections by directors and shareholders required
[Repealed]
HA 39
Revocation of elections
[Repealed]
Qualifying company election tax
HA 40
Liability for qualifying company election tax
HA 41
Calculating qualifying company election tax
HA 42
Paying qualifying company election tax
Effective interests in qualifying companies
HA 43
Meaning of effective interest
HA 44
Measuring effective interests
Subpart HB—Look-through companies
HB 1
Look-through companies are transparent
HB 2
Previous income and expenditure or loss
HB 3
Loss balances extinguished
HB 4
General provisions relating to disposals
HB 5
Disposal of owner’s interests
HB 6
Disposal of trading stock
HB 7
Disposal of depreciable property
HB 8
Disposal of financial arrangements and certain excepted financial arrangements
HB 9
Disposal of short-term agreements for sale and purchase
HB 10
Disposal of livestock
HB 11
Limitation on deductions by persons with interests in look-through companies
HB 12
Limitation on deductions by owners of look-through companies: carry-forward
HB 13
LTC elections
Subpart HC—Trusts
Introductory provisions
HC 1
What this subpart does
HC 2
Obligations of joint trustees for calculating income and providing returns
HC 3
Multiple settlements
HC 4
Corpus of trust
Trust income
HC 5
Amounts derived by trustees
HC 6
Beneficiary income
HC 7
Trustee income
HC 8
Amounts received after person’s death
Classification of trusts
HC 9
Classifying trusts
HC 10
Complying trusts
HC 11
Foreign trusts
HC 12
Non-complying trusts
HC 13
Charitable trusts
Distributions from trusts
HC 14
Distributions from trusts
HC 15
Taxable distributions from non-complying and foreign trusts
HC 16
Ordering rule for distributions from non-complying and foreign trusts
Tax treatment of amounts that beneficiaries derive from trusts
HC 17
Amounts derived as beneficiary income
HC 18
Taxable distributions from foreign trusts
HC 19
Taxable distributions from non-complying trusts
HC 20
Distributions from complying trusts
HC 21
Distributions from community trusts
HC 22
Use of tax losses to reduce taxable distributions from non-complying trusts
HC 23
Temporary absences of beneficiaries
Tax treatment of trustee income
HC 24
Trustees’ obligations
HC 25
Foreign-sourced amounts: non-resident trustees
HC 26
Foreign-sourced amounts: resident trustees
Settlors and their liabilities
HC 27
Who is a settlor?
HC 28
Activities treated as those of settlor
HC 29
Settlors’ liability to income tax
Treatment of transition situations
HC 30
Treatment of foreign trusts when settlor becomes resident
Valuation of property, trading stock, and financial arrangements
HC 31
When existing trusts come into tax base
HC 31B
Value transfer by deferral, or non-exercise, of right to demand payment
Rate and payment of income tax
HC 32
Liability of trustee as agent
HC 33
Choosing to satisfy income tax liability of trustee
HC 34
Taxable distributions from non-complying trusts
HC 35
Beneficiary income of minors
HC 36
Trusts and minor beneficiary rule
HC 37
Testamentary trusts and minor beneficiary rule
Subpart HD—Agents
Introductory provisions
HD 1
What this subpart does
HD 2
Joint liability of principal and agent for tax obligations
HD 3
Agents’ duties and liabilities
HD 4
Treatment of principals
HD 5
Matters between principals and agents
HD 6
When relationship effectively that of principal and agent
HD 7
Rate and amount of tax
Particular cases
HD 8
Circumstances giving rise to agency
HD 9
Guardians
HD 10
Mortgagees in possession
HD 11
Nominated companies
HD 12
Trusts
HD 13
Unit trusts
HD 13B
AIM companies
HD 14
Companies issuing debentures
HD 15
Asset stripping of companies
HD 16
Non-resident general insurers
HD 17
Agent paying premiums to residents of Switzerland
HD 17B
Lloyd’s of London: agents for life insurance
Absentees
HD 18
Agency in relation to absentees generally
HD 19
Persons receiving absentees’ income
HD 20
Persons carrying on business for absentees
HD 20B
General partners and partners carrying on with or managing business involving absentees
HD 21
Companies
HD 22
Banking companies
HD 23
Trustees of group investment funds
HD 24
Shipping businesses
HD 25
Persons remitting amounts outside New Zealand
Non-residents
HD 26
Agency in relation to non-residents generally
HD 27
Employers
HD 28
Government pensions and payments under superannuation schemes
HD 29
Persons acquiring goods from overseas
HD 30
Members of wholly-owned large multinational group
Subpart HE—Mutual associations
HE 1
Income and deductions of mutual associations
HE 2
Classes of mutual transaction
HE 3
Association rebates
HE 4
Apportionment when transactions with members and non-members
HE 5
Association rebates paid by shares or credit
Subpart HF—Maori authorities
Introductory provisions
HF 1
Maori authorities and the Maori authority rules
HF 2
Who is eligible to be a Maori authority?
HF 3
Applying provisions to Maori authorities
Maori authority distributions
HF 4
What constitutes a Maori authority distribution?
HF 5
Notional distributions of co-operative companies
HF 6
Tax treatment of Maori authority distributions
HF 7
Taxable Maori authority distributions
HF 8
Proportional allocation
Changing status
Table H1Consequences of change in entity status for purposes of Maori authority rules
HF 9
Treatment of companies and trusts that choose to apply this subpart
HF 10
Market value calculations
HF 11
Choosing to become Maori authority
Subpart HG—Joint venturers, partners, and partnerships
Joint venturers
HG 1
Joint venturers
Partners and partnerships
HG 2
Partnerships are transparent
HG 3
General provisions relating to disposals
HG 4
Disposal upon final dissolution
HG 5
Disposal of partner’s interests
HG 6
Disposal of trading stock
HG 7
Disposal of depreciable property
HG 8
Disposal of financial arrangements and certain excepted financial arrangements
HG 9
Disposal of short-term agreements for sale and purchase
HG 10
Disposal of livestock
HG 11
Limitation on deductions by partners in limited partnerships
HG 12
Limitation on deductions by partners in limited partnerships: carry-forward
Subpart HL—Portfolio investment entities
[Repealed]
Introductory provisions
HL 1
Intended effect on portfolio tax rate entities and investors
[Repealed]
HL 2
Scheme of subpart
[Repealed]
Eligibility requirements: portfolio investment entities and foreign investment vehicles
HL 3
Eligibility requirements for entities
[Repealed]
HL 4
Effect of failure to meet eligibility requirements for entities
[Repealed]
HL 5
Foreign investment vehicles
[Repealed]
HL 5B
Meaning of investor and portfolio investor class
[Repealed]
HL 5C
Income interest requirement
[Repealed]
HL 6
Investor membership requirement
[Repealed]
HL 7
Investor return adjustment requirement: portfolio tax rate entity
[Repealed]
HL 8
Imputation credit distribution requirement: portfolio listed company
[Repealed]
HL 9
Investor interest size requirement
[Repealed]
HL 10
Further eligibility requirements relating to investments
[Repealed]
Becoming and ceasing to be portfolio investment entity
HL 11
Election to become portfolio investment entity and cancellation of election
[Repealed]
HL 12
Unlisted company choosing to become portfolio listed company
[Repealed]
HL 13
Becoming portfolio investment entity
[Repealed]
HL 14
Tax consequences from transition
[Repealed]
HL 15
Ceasing to be portfolio investment entity
[Repealed]
Periods relevant to calculation of portfolio entity tax liability
HL 16
Portfolio allocation period and portfolio calculation period
[Repealed]
Allocation of income in some cases
HL 17
Treatment of income from interest when entitlement conditional or lacking
[Repealed]
HL 18
Certain new investors treated as part of existing portfolio investor class
[Repealed]
Calculating portfolio entity tax liability
HL 19
Portfolio class net income and portfolio class net loss for portfolio allocation period
[Repealed]
HL 19B
Treatment of certain provisions made by portfolio tax rate entity
[Repealed]
HL 20
Portfolio class taxable income and portfolio class taxable loss for portfolio allocation period
[Repealed]
HL 21
Portfolio entity tax liability and tax credits of portfolio tax rate entity for period
[Repealed]
Payment by portfolio tax rate entity of tax for tax year
HL 22
Payments of tax by portfolio tax rate entity making no election
[Repealed]
HL 23
Payments of tax by portfolio tax rate entity choosing to pay provisional tax
[Repealed]
HL 24
Payments of tax by portfolio tax rate entity choosing to make payments when investor leaves
[Repealed]
HL 25
Optional payments of tax by portfolio tax rate entities
[Repealed]
Results for investors
HL 26
Portfolio investor allocated income and portfolio investor allocated loss
[Repealed]
HL 27
Treatment of portfolio investor allocated loss for zero-rated portfolio investors and investors with portfolio investor exit period
[Repealed]
Tax credits for entity
HL 28
Treatment of portfolio investor allocated loss for other investors
[Repealed]
HL 29
Credits received by portfolio tax rate entity or portfolio investor proxy
[Repealed]
Treatment of losses for entity
HL 30
Portfolio entity formation loss
[Repealed]
HL 31
Portfolio class taxable income and portfolio class taxable loss for tax year
[Repealed]
HL 32
Treatment of portfolio class taxable loss and portfolio class land loss for tax year
[Repealed]
Portfolio investor proxies
HL 33
Portfolio investor proxies
[Repealed]
Subpart HM—Portfolio investment entities
Introductory provisions
HM 1
Outline of subpart and relationship with other Parts
HM 2
What is a portfolio investment entity?
HM 3
Foreign PIE equivalents
HM 4
Who is an investor?
HM 5
What is an investor class?
HM 6
Intended effects for multi-rate PIEs and investors
HM 6B
Optional look-through rules for certain PIEs
Entry rules
HM 7
Requirements
Requirements
HM 8
Residence in New Zealand
HM 9
Collective schemes
HM 10
Exclusion: life insurance business
HM 11
Investment types
HM 12
Income types
HM 13
Maximum shareholdings in investments
HM 14
Minimum number of investors
HM 15
Maximum investor interests
HM 16
Associates combined
HM 17
Same rights to all investment proceeds
HM 18
Requirements for listed PIEs: unlisted companies
HM 19
Requirements for listed PIEs: fully crediting distributions
HM 19B
Modified rules for foreign investment zero-rate PIEs
HM 19C
Modified rules for foreign investment variable-rate PIEs
HM 20
Re-entering as PIE: 5-year rule
Exceptions
HM 21
Exceptions for certain investors
HM 22
Exceptions for certain funds
HM 23
Exceptions for foreign PIE equivalents
Exit rules
HM 24
Immediate loss of PIE status
HM 25
When entity no longer meets investment or investor requirements
HM 26
Starting life insurance business
HM 27
When multi-rate PIE no longer meets investor interest adjustment requirements
HM 28
When listed PIE no longer meets requirements
HM 29
Choosing to cancel status
HM 30
When foreign PIE equivalent no longer meets requirements
Rules for multi-rate PIEs
Introductory provisions
HM 31
Rules for multi-rate PIEs
HM 32
Rules for and treatment of investors in multi-rate PIEs
HM 33
Proxies for PIE investors
Attributing income to investors
HM 34
Attribution periods
HM 35
Determining net amounts and taxable amounts
HM 35B
Treatment of certain provisions made by multi-rate PIEs
HM 35C
Determining amounts for notified foreign investors
HM 36
Calculating amounts attributed to investors
HM 36B
Calculating PIE schedular income adjustments for natural person investors
HM 37
When income cannot be attributed
HM 38
When superannuation fund investor has conditional entitlement
HM 39
New investors in existing investor classes
HM 40
Deductions for attributed PIE losses for zero-rated and exiting investors equal to amount attributed
Calculating and paying tax liability
HM 41
Options for calculation and payment of tax
HM 42
Exit calculation option
HM 42B
Part-year tax calculations for PIEs under the exit calculation option for the 2010–11 tax year
HM 43
Quarterly calculation option
HM 44
Provisional tax calculation option
HM 44B
NRWT calculation option
HM 45
Voluntary payments
HM 46
Calculation process
HM 47
Calculation of tax liability or tax credit of multi-rate PIEs
Adjusting investors’ interests
HM 48
Adjustments to investor interests or to distributions
Using tax credits
HM 49
Tax credits: when sections HM 50 to HM 55 apply
HM 50
Attributing credits to investors
HM 51
Use of foreign tax credits by PIEs
HM 52
Use of foreign tax credits by zero-rated and certain exiting investors
HM 53
Use of tax credits other than foreign tax credits by PIEs
HM 54
Use of tax credits other than foreign tax credits by investors
HM 55
Tax credits for losses
Special rules for foreign investment PIEs
HM 55C
Modified source rules
HM 55D
Requirements for investors in foreign investment PIEs
HM 55E
Changes in status of investors in foreign investment PIEs
HM 55F
Treatment of income attributed to notified foreign investors
HM 55FB
Notified foreign investors and tax credits for supplementary dividends
HM 55G
Allowable amounts and thresholds for income with New Zealand source
HM 55H
Treatment when certain requirements for foreign investment PIEs not met
Prescribed and notified rates for investors in multi-rate PIEs
HM 56
Prescribed investor rates: schedular rates
HM 57
Prescribed investor rates for certain investors: 0%
HM 57B
Prescribed investor rates for new residents
HM 58
Transition of rate for certain investors
HM 59
Prescribed investor rates for certain investors: 0%
[Repealed]
HM 60
Notified investor rates
HM 60B
Investor rates provided by Commissioner
HM 61
Certain exiting investors zero-rated
Exit levels and periods
HM 62
Exit levels for investors
HM 63
Exit periods
Treatment of losses by PIEs
Losses of certain multi-rate PIEs
HM 64
Use of investor classes’ losses
HM 65
Use of land losses of investor classes
Formation losses
HM 66
Formation losses carried forward to tax year
HM 67
Formation losses carried forward to first quarter
HM 68
When formation losses carried forward are less than 5% of formation investment value
HM 69
When formation losses carried forward are 5% or more of formation investment value: 3-year spread
HM 70
Maximum amount of formation losses allocated by multi-rate PIEs to investor classes
Elections and consequences
HM 71
Choosing to become PIE
HM 71B
Choosing to become foreign investment PIE
HM 72
When elections take effect
HM 73
Transition: provisional tax
HM 74
Transition: entities with non-standard income years
HM 75
Transition: treatment of shares held in certain companies
HM 76
Transition: FDPA companies
[Repealed]
Subpart HR—Other entities
Partnerships and joint ventures
HR 1
Partnerships and joint ventures
[Repealed]
Funds
HR 2
Group investment funds
HR 3
Definitions for section HR 2: group investment funds
HR 4
Government Superannuation Fund
HR 4B
Activities relating to New Zealand Superannuation Fund and Venture Capital Fund
Airport operators
HR 5
Airport operators: general
HR 6
Airport operator’s assets
HR 7
Meaning of airport operator’s activities
Transitional residents
HR 8
Transitional residents
Debt funding special purpose vehicles
HR 9
Debt funding special purpose vehicles are transparent if election made by originator
HR 9BA
Elections to treat debt funding special purpose vehicles as transparent
HR 9B
Bankruptcy-remote property during application of section HR 9
HR 10
What happens when vehicle stops being transparent debt funding special purpose vehicle?
Non-exempt charities: cessation of tax-exempt status
HR 11
Non-exempt charities: initial tax base
HR 12
Non-exempt charities: treatment of tax-exempt accumulations
Lloyd’s of London: life insurance
HR 13
Lloyd’s of London: life insurance
Subpart HZ—Terminating provisions
HZ 1
Distributions from trusts of pre-1989 tax reserves
HZ 2
Trusts that may become complying trusts
HZ 3
Special partnerships: transition into limited partnerships and limited partnerships deduction rules
HZ 4
Overseas limited partnerships: transition into limited partnerships deduction rules
HZ 4B
Qualifying companies: transition into partnership
HZ 4C
Qualifying companies: transition into look-through companies
HZ 4D
Qualifying companies: transition into sole traderships
HZ 4E
Transition out of LTC regime for Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017
HZ 5
Transitional provisions for PIE rules
HZ 6
Saving of binding rules relating to portfolio investment entities
HZ 7
Saving of binding rulings relating to settlements on trusts
HZ 8
Retrospective transitional provision for market valuation under section HB 4
HZ 9
Elections to treat existing debt funding special purpose vehicles as transparent
HZ 10
What happens when election is made under section HZ 9?
HZ 11
Protection from non-compliance: Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
Part I Treatment of tax losses
Subpart IA—General rules for tax losses
IA 1
What this subpart does
IA 2
Tax losses
IA 3
Using tax losses in tax year
IA 3B
Tax losses and procedures under Insolvency Act 2006
IA 4
Using loss balances carried forward to tax year
IA 5
Restrictions on companies’ loss balances carried forward: continuity of ownership
IA 6
Restrictions on companies grouping tax losses
IA 7
Restrictions relating to ring-fenced tax losses
IA 8
Restrictions relating to schedular income
IA 9
Ordering rules
IA 10
Amended assessments
Subpart IB—Carrying forward companies’ loss balances: continuity of business activities
IB 1
Purpose
IB 2
Meaning of ownership continuity breach
IB 2B
When subsequent ownership continuity breach regarded as occurring
IB 3
When tax loss components of companies carried forward despite ownership continuity breach
IB 4
Business continuity period
IB 5
When group companies treated as single company
Subpart IC—Grouping tax losses
Introductory provisions
IC 1
Company A making tax loss available to company B
IC 2
Threshold levels for grouping tax losses in tax year
IC 3
Common ownership: group of companies
IC 4
Common ownership: wholly-owned groups of companies
Requirements and methods
IC 5
Company B using company A’s tax loss
IC 6
Common ownership for period
IC 7
Place of incorporation or carrying on business
IC 8
Limitations on amounts used
IC 9
Date for payment and notice to Commissioner
IC 10
When companies have different balance dates
IC 11
Reduction of amounts used by companies
IC 12
Bad debts or decline in value of shares
IC 13
Variation of requirements for development companies in Niue
Subpart ID—Use of tax losses by consolidated groups
ID 1
Treatment of tax losses by consolidated groups
ID 2
Pre-consolidation losses: general treatment
ID 3
Pre-consolidation losses: use by group companies
ID 4
Pre-consolidation losses on entry: part-year rule
ID 5
Pre-consolidation losses on exit: part-year rule
Subpart IE—Treatment of tax losses on amalgamation of companies
IE 1
When this subpart applies
IE 2
Treatment of tax losses by amalgamating company
IE 3
Treatment of tax losses by amalgamated company
IE 4
Group companies’ treatment of tax losses on amalgamation
IE 5
Applying the continuity provisions when companies amalgamate
Subpart IP—Meeting requirements for part-years
Introductory provisions
IP 1
When this subpart applies
IP 2
Group companies’ common span
Tax loss components carried forward
IP 3
Ownership continuity breach: tax loss components of companies carried forward
IP 3B
Business continuity breach: tax loss components of companies carried forward
Grouping part-year tax losses
IP 4
Breach in income year in which tax loss component arises
IP 5
Breach in tax year in which loss balance is grouped
Statements and notices
IP 6
Financial statements required
IP 7
Notices required
Subpart IQ—Attributed controlled foreign company net losses and foreign investment fund net losses
IQ 1A
When this subpart applies
IQ 1
General treatment
IQ 1B
Losses carried forward to tax year
IQ 2
Ring-fencing cap on attributed CFC net losses
IQ 2B
Effect of attributed CFC net loss and FIF net loss from before first affected year
IQ 2C
Effect of FIF net loss if attributed FIF income method not available
IQ 3
Ring-fencing cap on FIF net losses
IQ 4
Group companies using attributed CFC net losses
IQ 5
Group companies using FIF net losses
[Repealed]
IQ 6
Pre-consolidation losses: general treatment
IQ 7
When group membership lacking in loss period
IQ 8
When group membership lacking in tax year of use
IQ 9
When attributed CFC net loss becomes FIF net loss
Subpart IS—Mineral miners’ and petroleum miners’ tax losses
IS 1
General treatment of mineral miners’ net losses
IS 2
Treatment of net losses resulting from certain expenditure
IS 3
Holding companies’ tax losses
[Repealed]
IS 4
Adjustments in certain circumstances
[Repealed]
IS 5
Petroleum miners’ tax losses
[Repealed]
IS 6
When company stops being mineral miner
Subpart IT—Cancellation of life insurer’s losses
IT 1
Cancellation of life insurer’s policyholder net losses
IT 2
Cancellation of life insurer’s tax loss when allowed into policyholder base
Subpart IV—Treatment of certain supplementary dividends
[Repealed]
IV 1
Supplementary dividend holding companies
[Repealed]
Subpart IW—Use of tax losses to pay shortfall penalties
IW 1
Shortfall penalties
Subpart IZ—Terminating provisions
IZ 1
Use of specified activity net losses
[Repealed]
IZ 2
Petroleum mining companies: treatment of payments from shareholders
[Repealed]
IZ 3
Petroleum mining companies: use of loss balances
[Repealed]
IZ 4
Tax losses for tax years before 1977–78 tax year
IZ 5
Companies’ tax losses for tax years before 1991–92 tax year
IZ 6
Companies’ tax losses for 1990–91 and 1991–92 tax years
IZ 7
Grouping tax losses for tax years before 1981–82 and between 1981–82 and 1991–92
IZ 7B
Grouping tax losses for commonality periods starting before 15 March 2017 for tax years after 1990–91
IZ 8
Election to use net loss for 2019–20 or 2020–21 year as tax loss in preceding year
Part L Tax credits and other credits
Subpart LA—General rules for tax credits
LA 1
What this Part does
LA 2
Satisfaction of income tax liability
LA 3
When total tax credit less than or equal to income tax liability
LA 4
When total tax credit more than income tax liability
LA 5
Treatment of remaining credits
LA 6
Remaining refundable credits: PAYE, RWT, and certain other items
LA 7
Remaining refundable credits: tax credits for social policy and other initiatives
LA 8
Remaining refundable credits: non-resident withholding tax
LA 8B
General rules particular to life insurers
LA 9
Use of tax credits
LA 10
Meaning of tax credit
Subpart LB—Tax credits for payments, deductions, and family payments
LB 1
Tax credits for PAYE income payments
LB 1B
Treatment of tax credits of certain companies with shareholders who are employees
LB 2
Tax credits for provisional tax payments
LB 3
Tax credits for resident withholding tax
LB 4
Tax credits for families
LB 4B
Tax credit for R&D tax losses
LB 5
Tax credits for non-resident withholding tax
LB 6
Tax credits for RSCT
LB 6B
Tax credits for RLWT
LB 7
Tax credits related to personal service rehabilitation payments: providers
LB 8
Tax credits related to personal service rehabilitation payments: payers
Subpart LC—Tax credits for natural persons
Tax credits for persons on low incomes
LC 1
When net income under low income amount
[Repealed]
LC 2
When net income in low income abatement range
[Repealed]
Tax credits for children
LC 3
Child’s income
[Repealed]
Tax credits for transitional circumstances
LC 4
Tax credits for transitional circumstances
[Repealed]
LC 5
Meaning of engaged in full-time work
[Repealed]
Tax credits for housekeeping
LC 6
Tax credits for housekeeping
[Repealed]
LC 7
Meaning of housekeeper
[Repealed]
LC 8
Some definitions
[Repealed]
Tax credits for absentees
LC 9
Tax credits for absentees
[Repealed]
Adjustments to certain tax credits
LC 10
Adjustment for change in return date
[Repealed]
LC 11
Adjustment when person is non-resident for part of tax year
[Repealed]
LC 12
Assessment when person is non-resident
[Repealed]
Tax credits for independent earners
LC 13
Tax credits for independent earners
Subpart LD—Tax credits for gifts and donations
Charitable and other public benefit gifts
LD 1
Tax credits for charitable or other public benefit gifts
LD 2
Exclusions
LD 3
Meaning of charitable or other public benefit gift
Payroll donations
LD 4
Tax credits for payroll donations
LD 5
Calculating amount of tax credit and filing particulars
LD 6
When donation is paid to ineligible recipient
LD 7
When donation returned to person
LD 8
Meaning and ranking of payroll donation
Subpart LE—Tax credits for imputation credits
LE 1
Tax credits for imputation credits
LE 2
Use of remaining credits by companies and trustees
LE 2B
Use of remaining credits by life insurer on policyholder base
LE 3
Use of remaining credits by others
LE 4
Trustees for minor beneficiaries
LE 5
Beneficiaries of trusts
LE 6
Partners in partnerships
LE 7
Credit transfer notices
LE 7B
Credit of RSCT for imputation credit
LE 8
Application of imputation ratio
LE 8B
Dividends from certain FIF interests
LE 9
Application of combined imputation and FDP ratio
[Repealed]
LE 10
When income tax unpaid
LE 11
Evidential requirements
Subpart LF—Tax credits for foreign dividend payment (FDP) credits
[Repealed]
LF 1
Tax credits for FDP credits
[Repealed]
LF 2
Trustees for minor beneficiaries
[Repealed]
LF 3
Beneficiaries of trusts
[Repealed]
LF 4
Partners in partnerships
[Repealed]
LF 5
Credit transfer notices
[Repealed]
LF 6
Application of FDP ratio
[Repealed]
LF 7
Application of combined imputation and FDP ratio
[Repealed]
LF 8
Credits for persons who are non-resident or who receive exempt income
[Repealed]
LF 9
When income tax unpaid
[Repealed]
LF 10
Evidential requirements
[Repealed]
Subpart LH—Tax credits for expenditure on research and development
[Repealed]
LH 1
Who this subpart applies to
[Repealed]
LH 2
Tax credits relating to expenditure on research and development
[Repealed]
LH 3
Requirements
[Repealed]
LH 4
Calculation of amount of credit
[Repealed]
LH 5
Adjustments to eligible expenditure
[Repealed]
LH 6
Research and development activities outside New Zealand
[Repealed]
LH 7
Research and development activities and related terms
[Repealed]
LH 8
Orders in Council
[Repealed]
LH 9
Internal software development: general
[Repealed]
LH 10
Internal software development: no associated internal software developer
[Repealed]
LH 11
Internal software development: associated internal software developer with same income year
[Repealed]
LH 12
Internal software development: associated internal software developer with different income year
[Repealed]
LH 13
Internal software development: limit
[Repealed]
LH 14
Treatment of depreciation loss for certain depreciable property
[Repealed]
LH 14B
Recovery of overpaid tax credit
[Repealed]
LH 15
Listed research providers
[Repealed]
LH 16
Industry research co-operatives
[Repealed]
LH 17
Some definitions
[Repealed]
Subpart LJ—Tax credits for foreign income tax
LJ 1
What this subpart does
LJ 2
Tax credits for foreign income tax
LJ 3
Meaning of foreign income tax
LJ 4
Meaning of segment of foreign-sourced income
LJ 5
Calculation of New Zealand tax
LJ 6
Taxable distributions and NRWT rules
LJ 7
Repaid foreign tax: effect on income tax liability
LJ 8
Repaid foreign tax: effect on FDP liability
[Repealed]
Subpart LK—Tax credits relating to attributed controlled foreign company income
Amounts of credits
LK 1
Tax credits relating to attributed CFC income
LK 2
Calculation of amount of credit
LK 3
Currency conversion
Use of credits in later tax years
LK 4
Use of remaining credits
LK 5
Companies’ credits carried forward
LK 5B
Credits from tax year before first affected year
LK 6
Use of credits by group companies
Treatment of taxable distributions
LK 7
Taxable distributions and NRWT rules
Consolidated companies
LK 8
Tax credits of consolidated companies
LK 9
Use of company’s credits carried forward
LK 10
When group membership lacking in tax year in which credit arises
LK 11
When group membership lacking in tax year in which credit used
Amalgamations of companies
LK 12
Treatment of credits when companies amalgamate
LK 13
Use of credits by amalgamated company
LK 14
Use by amalgamated company of credits carried forward
LK 15
Use of amalgamating company’s credits
Subpart LL—Underlying foreign tax credits (UFTC)
[Repealed]
LL 1
What this subpart does
[Repealed]
LL 2
Tax credits for underlying foreign tax
[Repealed]
LL 3
Meaning of grey list dividend
[Repealed]
LL 4
Tracking accounts
[Repealed]
LL 5
Meaning of foreign dividend company net earnings
[Repealed]
LL 6
Foreign dividend company lower tier UFTCs
[Repealed]
LL 7
Conduit financing arrangements
[Repealed]
LL 8
Currency conversion
[Repealed]
LL 9
Some definitions
[Repealed]
Subpart LO—Tax credits for Maori authority credits
LO 1
Tax credits for Maori authority credits
LO 2
Beneficiaries of trusts
LO 2B
Credit of RSCT for Maori authority credit
LO 3
Application of Maori authority distribution ratio
LO 4
When income tax unpaid
LO 5
Evidential requirements
Subpart LP—Tax credits for supplementary dividends
Introductory provision
LP 1
What this subpart does
Use of credits
LP 2
Tax credits for supplementary dividends
LP 3
Use of remaining credits
LP 4
Continuity rules for carrying credits forward
LP 5
Application of benchmark dividend rules and imputation credit ratio
LP 6
Deriving supplementary dividend and breach of terms of trust
Supplementary dividend holding companies
LP 7
Requirements for supplementary dividend holding companies
[Repealed]
LP 8
Relationship with exempt income rules
[Repealed]
LP 9
Relationship with RWT rules
[Repealed]
LP 10
Limitation on deductions
[Repealed]
Subpart LQ—Tax credits of conduit tax relief companies
[Repealed]
LQ 1
Tax credits of CTR companies
[Repealed]
LQ 2
Limitation on amount of credit
[Repealed]
LQ 3
Determining percentage of non-resident shareholders
[Repealed]
LQ 4
Date for determining percentage of non-resident shareholders
[Repealed]
LQ 5
CTR additional dividends
[Repealed]
Subpart LR—Tax credits for policyholder income
[Repealed]
LR 1
Tax credits for policyholder income
[Repealed]
Subpart LS—Tax credits for multi-rate PIEs and investors
LS 1
Tax credits for multi-rate PIEs
LS 2
Tax credits for investors in multi-rate PIEs
LS 3
Tax credits for zero-rated investors
LS 4
Tax credits for certain exiting investors
Subpart LT—Tax credits for petroleum miners
LT 1
Tax credits for petroleum miners
LT 2
Petroleum mining operations outside New Zealand
Subpart LU—Tax credits for mineral miners
LU 1
Tax credits for mineral miners
Subpart LY—Research and development tax credits
LY 1
Research and development tax credits
LY 2
Key terms
LY 3
When this subpart applies
LY 4
Calculation of tax credit
LY 5
Eligible research and development expenditure
LY 6
Contracted research and development expenditure
LY 7
Foreign research and development expenditure
LY 8
Carry forward for remaining research and development tax credits
LY 9
Orders in Council
LY 10
Evaluation
Subpart LZ—Terminating provisions
Underlying foreign tax credits
LZ 1
Low tax jurisdiction companies
[Repealed]
Credits for certain non-resident investment companies
LZ 2
Certain development projects
[Repealed]
LZ 3
Interest derived from development investments
[Repealed]
LZ 4
Dividends derived from development investments
[Repealed]
LZ 5
Some definitions
[Repealed]
Credits for interest on home vendor mortgages
LZ 6
Interest on home vendor mortgages
LZ 7
Maximum amount of credit under section LZ 6
LZ 8
Meaning of home vendor mortgage
Credits for savings in special home ownership accounts
LZ 9
Savings in special home ownership accounts
[Repealed]
LZ 10
Maximum amount for 1 special home ownership account for 1 tax year
[Repealed]
LZ 11
Maximum amount for all special home ownership accounts for all tax years
[Repealed]
LZ 12
Meaning of increase in savings
[Repealed]
Research and development tax credits
LZ 13
Part-year override of section LY 3(2)(b)
LZ 14
Research and development tax credits’ refundability: option for 2019–20 income year
Part M Tax credits paid in cash
Subpart MA—General provisions
MA 1
What this Part does
MA 2
Relationship with core provisions
MA 3
Excluded income
MA 4
Calculation of amounts of credit producing negative amounts
MA 5
Advice from outside agencies
MA 6
Avoidance arrangements
MA 7
Meaning of full-time earner and earner for family scheme
MA 8
Some definitions for family scheme
Subpart MB—Adjustment of net income for family scheme
MB 1
Adjustments for calculation of family scheme income
MB 2
Adjustment for period that is less or more than 1 year
MB 3
When person carries on 1 or more businesses or investment activities
MB 4
Family scheme income of major shareholders in close companies
MB 5
Treatment of distributions from superannuation schemes
MB 6
Treatment of distributions from retirement savings schemes
MB 7
Family scheme income of settlor of trust
MB 7B
Family scheme income from employment benefits: employees not controlling shareholders
MB 8
Family scheme income from fringe benefits: controlling shareholders
MB 9
Family scheme income from deposits in main income equalisation accounts
[Repealed]
MB 10
Family scheme income from certain pensions and annuities
MB 11
Family scheme income from amounts derived by dependent children
MB 12
Family scheme income from non-residents’ foreign-sourced income
MB 12B
Family scheme income from trusts, not being beneficiary income, and where recipient not settlor
MB 13
Family scheme income from other payments
MB 14
Remission income of discharged bankrupt excluded
Subpart MC—Entitlements under family scheme
MC 1
What this subpart does
MC 2
Who qualifies for entitlements under family scheme?
MC 3
First requirement: person’s age
MC 4
Second requirement: principal care
MC 5
Third requirement: residence or entitlement to emergency benefit
MC 6
When person does not qualify
MC 7
When spouse or partner entitled under family scheme
MC 8
Continuing requirements
MC 9
Credits for person aged 18
MC 10
Principal caregiver
MC 11
Relationship periods and entitlement periods
Subpart MD—Abating WFF tax credits
Calculating amount of credit
MD 1
Abating WFF tax credit
MD 2
Calculating net contributions to credits
Family tax credit
MD 3
Calculation of family tax credit
In-work tax credit
MD 4
Entitlement to in-work tax credit
MD 5
First requirement: person’s age
MD 6
Second requirement: principal care
MD 7
Third requirement: residence
MD 8
Fourth requirement: person not receiving benefit
MD 9
Fifth requirement: earner
MD 10
Calculation of in-work tax credit
Parental tax credit
MD 11
Entitlement to parental tax credit
MD 12
Calculation of parental tax credit
MD 12B
Additional parental tax credit amount included in lump sum if 70-day period crosses 2 tax years
Credit abatement
MD 13
Calculation of family credit abatement
MD 14
Person receiving protected family tax credit
MD 15
Family scheme income for purposes of section MD 14
MD 16
Additional parental tax credit abatement amount for lump sum if 70-day period crosses 2 tax years
Subpart ME—Minimum family tax credit
ME 1
Minimum family tax credit
ME 2
Meaning of employment for this subpart
ME 3
Meaning of net family scheme income
Subpart MF—Payment of credits
MF 1
Application for payment of tax credit by instalment
MF 2
When person not entitled to payment by instalment
MF 3
Calculating amount of interim WFF tax credit
MF 4
Requirements for calculating instalment of tax credit
MF 4B
Calculation of instalments: 1 April 2008 to 30 September 2008
[Repealed]
MF 4C
Calculation of instalments: 1 October 2008 to 31 March 2009
[Repealed]
MF 4D
Calculation of instalments: 1 April 2010 to 30 September 2010
[Repealed]
MF 4E
Calculation of instalments: 1 October 2010 to 31 March 2011
[Repealed]
MF 4F
Calculation of instalments: 1 April 2018 to 30 June 2018
[Repealed]
MF 4G
Calculation of instalments: 1 July 2018 to 31 March 2019
[Repealed]
MF 4H
Calculation of instalments: 1 April 2021 to 30 June 2021
MF 4I
Calculation of instalments: 1 July 2021 to 31 March 2022
MF 5
Recovery of overpaid tax credit
MF 6
Overpayment or underpayment of tax credit
MF 7
Orders in Council
Subpart MG—Best Start tax credit
MG 1
Best Start tax credit entitlement
MG 2
Best Start tax credit
MG 3
Best Start credit abatement
MG 4
Person receiving protected Best Start tax credit
Subpart MK—Tax credits for KiwiSaver schemes and complying superannuation funds
MK 1
Tax credits for superannuation contributions
Tax credits for fund providers
MK 2
Eligibility requirements
MK 3
Payment of tax credits
MK 4
Amount of tax credit
MK 5
Crown contributions for members
MK 6
Credit given by fund providers
MK 7
Amounts paid in excess
MK 8
Treatment of tax credits on permanent emigration
Tax credits for employers
MK 9
Eligibility requirements
[Repealed]
MK 10
Amount of credit
[Repealed]
MK 11
When tax credits arise
[Repealed]
MK 12
Using tax credits
[Repealed]
MK 13
When short payment and unpaid compulsory employer contributions found after tax credit used
[Repealed]
MK 14
Employees opting out
[Repealed]
MK 15
Groups of persons
MK 16
Private domestic workers
Subpart ML—Tax credits for redundancy payments
[Repealed]
ML 1
What this subpart does
[Repealed]
ML 2
Tax credit for redundancy payments
[Repealed]
ML 3
Payment by Commissioner
[Repealed]
Subpart MX—Tax credits for R&D tax losses
MX 1
When subpart applies
MX 2
Corporate eligibility criteria
MX 3
Wage intensity criteria
MX 4
R&D loss tax credits
MX 5
Cancellation of R&D tax losses
MX 6
Deduction if increase in basic tax rate for company
MX 7
Reinstatement of R&D tax losses and R&D repayment tax
Subpart MZ—Terminating provisions
MZ 1
Entitlement to child tax credit
MZ 2
Calculation of child tax credit
MZ 3
Exclusions from determination of family scheme income
Part O Memorandum accounts
Subpart OA—General provisions
Introductory provisions
OA 1
What this Part does
OA 2
Memorandum accounts
OA 3
General rules for maintaining memorandum accounts
OA 4
Certain credits and debits arising only in group accounts
Credits and debits
OA 5
Credits
OA 6
Debits
Opening balances
OA 7
Opening balances of memorandum accounts
Shareholder continuity requirements
OA 8
Shareholder continuity requirements for memorandum accounts
Treatment of credits and debits on resident’s restricted amalgamation
General provision
OA 9
General treatment of credits and debits on resident’s restricted amalgamation
When companies amalgamate
OA 10
When credits or debits due to amalgamating company but not recorded
OA 11
FDP account on resident’s restricted amalgamation
[Repealed]
OA 12
CTR account on resident’s restricted amalgamation
[Repealed]
OA 13
Policyholder credit account on resident’s restricted amalgamation
[Repealed]
Amalgamation of companies in consolidated groups
OA 14
Continuity of shareholding when group companies amalgamate
OA 15
When credits or debits due to consolidated group but not recorded
OA 16
When FDP account ends on resident’s restricted amalgamation
[Repealed]
OA 17
When policyholder credit account ends on resident’s restricted amalgamation
[Repealed]
Maximum permitted ratios
OA 18
Calculation of maximum permitted ratios
Subpart OB—Imputation credit accounts (ICA)
Introductory provisions
OB 1
General rules for companies with imputation credit accounts
OB 2
Australian companies with imputation credit accounts
OB 3
Imputation credit accounts
OB 3B
General rule for life insurer’s policyholder base
Imputation credits
OB 4
ICA payment of tax or transfer to account
OB 5
ICA deposit in tax pooling account
OB 6
ICA transfer from tax pooling account
OB 7
ICA payment of further income tax
OB 7B
ICA payment of qualifying company election tax
OB 7C
ICA expenditure on research and development
[Repealed]
OB 8
ICA resident withholding tax withheld
OB 9
ICA dividend derived with imputation credit
OB 9B
ICA attributed PIE income with imputation credit
OB 9C
ICA credit for research and development tax credit
OB 10
ICA dividend derived with FDP credit
[Repealed]
OB 11
ICA payment of FDP
[Repealed]
OB 12
ICA transfer from FDP account
[Repealed]
OB 13
ICA transfer of debit balance on leaving wholly-owned group
OB 14
ICA payment of tax on leaving wholly-owned group
OB 15
ICA payment of tax on joining wholly-owned group
OB 16
ICA attribution for personal services
OB 17
ICA transfer from policyholder credit account
[Repealed]
OB 18
ICA transfer from ASC account
OB 19
ICA transfer to master fund
OB 19B
ICA transfer to loss-using group company
OB 20
ICA distribution with Maori authority credit
OB 21
ICA balance of Maori authority credit account
OB 22
ICA replacement payment to company under share-lending arrangement
OB 23
ICA credit transfer to company
OB 23B
ICA transfer from consolidated imputation group to departing member for unused tax payment
OB 24
ICA credit on resident’s restricted amalgamation
OB 25
ICA reversal of tax advantage arrangement
OB 26
ICA elimination of double debit
OB 27
ICA non-resident withholding tax withheld
OB 28
ICA payment of amount of tax for schedular payment
OB 29
ICA payment of schedular income tax
Imputation debits
OB 30
ICA payment of dividend
OB 31
ICA allocation of provisional tax
OB 32
ICA refund of tax or transfer from account
OB 33
ICA amount applied to pay other taxes
OB 34
ICA refund from tax pooling account
OB 35
ICA transfer within tax pooling account
OB 35B
ICA debit for transfer from tax pooling account for policyholder base liability
OB 36
ICA refund of FDP
[Repealed]
OB 37
ICA refund of tax credit
OB 38
ICA overpayment of FDP
[Repealed]
OB 39
ICA transfer for net foreign attributed income
[Repealed]
OB 40
ICA attribution for personal services
OB 41
ICA debit for loss of shareholder continuity
OB 42
ICA on-market cancellation
OB 43
ICA breach of imputation ratio
OB 44
ICA debit on leaving wholly-owned group
OB 45
ICA redemption debit
OB 46
ICA transfer from member fund
OB 46B
ICA transfer from group company to loss-using group company
OB 47
Debit for policyholder base imputation credits
OB 47B
Tax paid by recipients of R&D loss tax credits
OB 48
ICA credit balance when Maori authority credit account starts
OB 49
ICA replacement payment by company under share-lending arrangement
OB 50
ICA returning share transfer
OB 51
ICA credit transfer by company
OB 52
ICA transfer to consolidated imputation group
OB 53
ICA debit on resident’s restricted amalgamation
OB 54
ICA tax advantage arrangement
OB 55
ICA retrospective imputation credit
OB 56
ICA final balance
OB 57
ICA refund of NRWT
OB 58
ICA refund of amount of tax for schedular payment
OB 59
ICA refund of schedular income tax
Imputation credits attached to dividends
OB 60
Imputation credits attached to dividends
OB 61
ICA benchmark dividend rules
OB 62
Retrospective attachment of imputation credits
OB 63
Australian dividends
OB 64
Replacement payments
Further income tax
OB 65
Further income tax for ICA closing debit balance
OB 66
Further income tax when company stops being ICA company
OB 67
Reduction of further income tax
OB 68
Income tax paid satisfying liability for further income tax
OB 69
Further income tax paid satisfying liability for income tax
OB 70
Application of other provisions
Imputation additional tax
OB 71
Imputation additional tax on leaving group of companies
OB 72
Imputation additional tax on joining wholly-owned group
OB 72B
Limit on using entitlement to refund after joining wholly-owned group
Distributions of statutory producer boards and co-operative companies
OB 73
Statutory producer boards attaching imputation credits to cash distributions
OB 74
Statutory producer boards attaching imputation credits to notional distributions
OB 75
Statutory producer boards’ notional distributions that are dividends
OB 76
Statutory producer boards attaching FDP credits
[Repealed]
OB 77
When and how statutory producer board makes election
OB 78
Co-operative companies attaching imputation credits to cash distributions
OB 78B
Co-operative companies attaching imputation credits to cash distributions to groups
OB 79
Co-operative companies attaching imputation credits to notional distributions
OB 80
Co-operative companies’ notional distributions that are dividends
OB 81
Co-operative companies attaching FDP credits
[Repealed]
OB 82
When and how co-operative company makes election
Election by group company for transfer of imputation credits with transfer of tax loss
OB 83
Group companies transferring imputation credits with transfer of tax loss
OB 84
When and how group company transferring tax loss makes election
Tables of credits and debits in memorandum accounts
Table O1: imputation credits
Table O2: imputation debits
Subpart OC—Foreign dividend payment accounts (FDPA)
[Repealed]
Introductory provisions
OC 1
General rules for companies with FDP accounts
[Repealed]
OC 2
FDP accounts
[Repealed]
OC 2B
General rule for life insurer’s policyholder base
[Repealed]
OC 3
Choosing to become FDPA company
[Repealed]
OC 4
When company chooses to stop being FDPA company
[Repealed]
OC 5
When company emigrates
[Repealed]
FDP credits
OC 6
FDPA payment of FDP
[Repealed]
OC 7
FDPA dividend derived with FDP credit
[Repealed]
OC 8
FDPA payment of FDP for transfer from CTR account
[Repealed]
OC 9
FDPA transfer for net foreign attributed income
[Repealed]
OC 10
FDPA payment of FDP for conduit debit balance
[Repealed]
OC 11
FDPA credit transfer to company
[Repealed]
OC 12
FDPA reversal of tax advantage arrangement
[Repealed]
FDP debits
OC 13
FDPA payment of dividend
[Repealed]
OC 14
FDPA refund of FDP
[Repealed]
OC 15
FDPA overpayment of FDP
[Repealed]
OC 16
FDPA refund of tax credit
[Repealed]
OC 17
FDPA credit transfer by company
[Repealed]
OC 18
FDPA transfer to imputation credit account
[Repealed]
OC 19
FDPA transfer to CTR account
[Repealed]
OC 20
Debit for policyholder base FDP credits
[Repealed]
OC 21
FDPA transfer to group account
[Repealed]
OC 22
FDPA breach of FDP ratio
[Repealed]
OC 23
FDPA breach of FDP ratio by PCA company
[Repealed]
OC 24
FDPA debit for loss of shareholder continuity
[Repealed]
OC 25
FDPA tax advantage arrangement
[Repealed]
OC 26
FDPA final balance
[Repealed]
FDP credits attached to dividends
OC 27
FDP credits attached to dividends
[Repealed]
OC 28
FDPA benchmark dividend rules
[Repealed]
OC 29
FDP credits and imputation credits attached to dividends
[Repealed]
Further income tax
OC 30
Payment of further income tax for closing debit balance
[Repealed]
OC 31
Payment of further income tax when company no longer New Zealand resident
[Repealed]
OC 32
Reduction of further income tax
[Repealed]
OC 33
Income tax paid satisfying liability for further income tax
[Repealed]
OC 34
Further income tax paid satisfying liability for income tax
[Repealed]
Some definitions
OC 35
Meaning of FDP reference period
[Repealed]
OC 36
Meaning of maximum deficit debit
[Repealed]
OC 37
Meaning of policyholder FDP ratio
[Repealed]
OC 38
Meaning of reduced deficit debit
[Repealed]
OC 39
Meaning of shareholder FDP ratio
[Repealed]
Table O3: FDP credits
Table O4: FDP debits
Subpart OD—Conduit tax relief accounts (CTRA)
[Repealed]
Introductory provisions
OD 1
General rules for companies with CTR accounts
[Repealed]
OD 2
CTR accounts
[Repealed]
OD 3
Choosing to become CTR company
[Repealed]
OD 4
When company stops being CTR company
[Repealed]
CTR credits
OD 5
CTRA tax credit for conduit tax relief
[Repealed]
OD 6
CTRA transfer from FDP account
[Repealed]
OD 7
CTRA dividend derived with CTR credit
[Repealed]
OD 8
CTRA reduction of FDP
[Repealed]
OD 9
CTRA reversal of tax advantage arrangement
[Repealed]
CTR debits
OD 10
CTRA payment of dividend
[Repealed]
OD 11
CTRA transfer to FDP account
[Repealed]
OD 12
CTRA transfer to group account
[Repealed]
OD 13
CTRA adjustment for conduit tax relief
[Repealed]
OD 14
CTRA break in shareholding chain for group company
[Repealed]
OD 15
CTRA break in shareholding chain for company
[Repealed]
OD 16
CTRA increase in resident shareholding
[Repealed]
OD 17
CTRA breach of CTR ratio
[Repealed]
OD 18
CTRA tax advantage arrangement
[Repealed]
OD 19
CTRA final balance
[Repealed]
CTR credits attached to dividends
OD 20
CTR credits attached to dividends
[Repealed]
OD 21
CTRA benchmark dividend rules
[Repealed]
OD 22
CTR credits and imputation credits attached to dividends
[Repealed]
Payment of FDP and refunds
OD 23
FDP payable for CTR debits
[Repealed]
OD 24
FDP payable on resident’s restricted amalgamation
[Repealed]
OD 25
Refunds on transfers to CTR account
[Repealed]
Table O5: conduit tax relief credits
Table O6: conduit tax relief debits
Subpart OE—Branch equivalent tax accounts (BETA)
Introductory provision
OE 1
General rules for persons with branch equivalent tax accounts
Companies with branch equivalent tax accounts
Introductory provisions
OE 2
Branch equivalent tax accounts of companies
[Repealed]
OE 3
Choosing to become BETA company
[Repealed]
OE 4
When company stops being BETA company
[Repealed]
OE 5
Treatment of attributed CFC income and FIF income in this subpart
Branch equivalent tax credits
OE 6
BETA payment of income tax on foreign income
[Repealed]
OE 7
BETA payment of income tax
[Repealed]
OE 8
BETA unused amount of debit balance
[Repealed]
OE 9
BETA refund of FDP
[Repealed]
OE 10
BETA credit for loss of shareholder continuity
[Repealed]
OE 11
BETA final balance
[Repealed]
Treatment of debits from conduit relief
OE 11B
Company with debit balance, including debits from conduit relief, in some income years
[Repealed]
Branch equivalent tax debits
OE 12
BETA payment of FDP
[Repealed]
OE 13
BETA reduction in FDP
[Repealed]
OE 14
BETA refund of income tax
[Repealed]
OE 15
BETA debit for loss of shareholder continuity
[Repealed]
OE 16
BETA final balance
[Repealed]
Debit if credit balance at beginning of first affected income year
OE 16B
Company with credit balance at beginning of first affected income year
[Repealed]
Persons with branch equivalent tax accounts
Introductory provisions
OE 17
Person choosing to become BETA person
OE 18
When person stops being BETA person
Branch equivalent tax credits
OE 19
BETA person’s payment of income tax on foreign income
Branch equivalent tax debits
OE 20
BETA person’s payment of income tax
OE 21
BETA person’s refund of income tax
OE 22
BETA person’s final balance
Table O7: branch equivalent tax credits
Table O8: branch equivalent tax debits
Table O9: person's branch equivalent tax credits
Table O10: person's branch equivalent tax debits
Subpart OF—Available subscribed capital accounts (ASCA)
Introductory provisions
OF 1
General rules for companies with ASC accounts
OF 2
ASC accounts
OF 3
Choosing to become ASC account company
ASC credits
OF 4
ASCA redemption credit
ASC debits
OF 5
ASCA transfer to imputation credit account
Table O11: ASC credits
Table O12: ASC debits
Subpart OJ—Policyholder credit accounts (PCA)
[Repealed]
Introductory provision
OJ 1
General rules for companies and other persons with policyholder credit accounts
[Repealed]
Companies with policyholder credit accounts
Introductory provision
OJ 2
Policyholder credit accounts of companies
[Repealed]
Policyholder credits of PCA company
OJ 3
PCA transfer from imputation credit account
[Repealed]
OJ 4
PCA transfer from FDP account
[Repealed]
OJ 5
PCA transfer of life insurance business
[Repealed]
OJ 6
PCA credit for maximum deficit in FDP account
[Repealed]
OJ 7
PCA credit for reduced deficit in FDP account
[Repealed]
Policyholder debits of PCA company
OJ 8
PCA payment of tax relating to policyholder base
[Repealed]
OJ 9
PCA transfer to imputation credit account
[Repealed]
OJ 10
PCA transfer to group account
[Repealed]
OJ 11
PCA company’s transfer of life insurance business
[Repealed]
Persons with policyholder credit accounts
Introductory provisions
OJ 12
Choosing to become PCA person
[Repealed]
OJ 13
Choosing to stop being PCA person
[Repealed]
Policyholder credits of PCA person
OJ 14
PCA person’s equivalent credit
[Repealed]
OJ 15
PCA person’s credit for transfer of life insurance business
[Repealed]
Policyholder debits of PCA person
OJ 16
PCA person’s payment of tax relating to policyholder base
[Repealed]
OJ 17
PCA person’s equivalent debit
[Repealed]
OJ 18
PCA person’s debit for transfer of life insurance business
[Repealed]
Table O13: policyholder credits
Table O14: policyholder debits
Table O15: person's policyholder credits
Table O16: person's policyholder debits
Subpart OK—Maori authority credit accounts (MACA)
Introductory provision
OK 1
General rules for Maori authorities with Maori authority credit accounts
Maori authority credits
OK 2
MACA payment of tax or transfer to account
OK 3
MACA transfer of excess tax from other Maori authorities
OK 4
MACA payment of further income tax
OK 4B
MACA expenditure on research and development
[Repealed]
OK 5
MACA distribution with Maori authority credit
OK 6
MACA dividend derived with imputation credit
OK 6B
MACA attributed PIE income with imputation credit
OK 6C
MACA research and development tax credit
OK 7
MACA dividend derived with FDP credit
[Repealed]
OK 8
MACA resident withholding tax withheld
OK 9
MACA reversal of tax advantage arrangement
Maori authority debits
OK 10
MACA distribution
OK 11
MACA transfer of excess tax to other Maori authorities
OK 12
MACA refund of income tax or transfer of excess tax to period or tax type
OK 13
MACA payment of other taxes
OK 14
MACA refund of FDP
[Repealed]
OK 14B
MACA refund of tax credit
OK 15
MACA debit for loss of shareholder continuity
OK 16
MACA breach of Maori authority credit ratio
OK 17
MACA tax advantage arrangement
OK 18
MACA final balance
Maori authority credits attached to distributions
OK 19
Maori authority credits attached to distributions
OK 20
MACA benchmark distribution rules
Further income tax
OK 21
Further income tax for closing debit balance
OK 22
Further income tax paid when Maori authority no longer Maori authority
OK 23
Further income tax paid satisfying liability for income tax
OK 24
Income tax paid satisfying liability for further income tax
Table O17: Maori authority credits
Table O18: Maori authority debits
Subpart OP—Memorandum accounts of consolidated groups
Introductory provisions
OP 1
Memorandum accounts of consolidated groups
OP 2
When credits and debits arise only in group accounts
Consolidated groups and imputation credit accounts
Introductory provisions
OP 3
Changes in consolidated imputation groups
OP 4
Resident imputation subgroups
OP 5
When credits and debits arise only in consolidated imputation group accounts
OP 6
Provisions applying to consolidated imputation groups
Imputation credits of consolidated imputation groups
OP 7
Consolidated ICA payment of tax
OP 8
Consolidated ICA deposit in tax pooling account
OP 9
Consolidated ICA transfer from tax pooling account
OP 10
Consolidated ICA allocation from company with overpaid provisional tax
OP 11
Consolidated ICA payment of further income tax
OP 11B
Consolidated ICA expenditure on research and development
[Repealed]
OP 11C
Consolidated ICA credit for research and development tax credit
OP 12
Consolidated ICA dividend derived with imputation credit
OP 13
Consolidated ICA dividend derived with FDP credit
[Repealed]
OP 14
Consolidated ICA payment of FDP
[Repealed]
OP 15
Consolidated ICA replacement payment to company under share-lending arrangement
OP 16
Consolidated ICA credit transfer to company
OP 16B
Consolidated ICA credit transfer to departing consolidated imputation group for unused tax payment
OP 17
Consolidated ICA resident withholding tax withheld
OP 18
Consolidated ICA transfer from group company’s FDP account
[Repealed]
OP 19
Consolidated ICA transfer from group’s FDP account
[Repealed]
OP 20
Consolidated ICA transfer from group company’s policyholder credit account
[Repealed]
OP 21
Consolidated ICA transfer from group’s policyholder credit account
[Repealed]
OP 22
Consolidated ICA transfer from group company’s ICA
OP 23
Consolidated ICA elimination of double debit
OP 24
Consolidated ICA reversal of tax advantage arrangement
OP 25
Consolidated ICA non-resident withholding tax withheld
OP 26
Consolidated ICA payment of amount of tax for schedular payment
OP 27
Consolidated ICA payment of schedular income tax liability
Imputation debits of consolidated imputation groups
OP 28
Consolidated ICA payment of dividend
OP 29
Consolidated ICA allocation of provisional tax
OP 30
Consolidated ICA refund of income tax
OP 31
Consolidated ICA amount applied to pay other taxes
OP 32
Consolidated ICA refund from tax pooling account
OP 33
Consolidated ICA transfer within tax pooling account
OP 33B
Consolidated ICA debit for transfer from tax pooling account for policyholder base liability
OP 34
Consolidated ICA refund of FDP
[Repealed]
OP 35
Consolidated ICA refund of tax credit
OP 36
Consolidated ICA overpayment of FDP
[Repealed]
OP 37
Consolidated ICA group company’s debit
OP 38
Consolidated ICA transfer for net foreign attributed income
[Repealed]
OP 39
Consolidated ICA replacement payment by company under share-lending arrangement
OP 40
Consolidated ICA returning share transfer
OP 41
Consolidated ICA credit transfer by company
OP 41B
Consolidated ICA debit for unused tax payment of departing member
OP 41C
Consolidated ICA debit for unused tax payment of departing part of group
OP 42
Consolidated ICA debit for loss of shareholder continuity
OP 43
Consolidated ICA breach of imputation ratio
OP 44
Consolidated ICA debit for policyholder base imputation credits
OP 45
Consolidated ICA redemption debit
OP 46
Consolidated ICA tax advantage arrangement
OP 47
Consolidated ICA final balance
OP 48
Consolidated ICA refund of NRWT
OP 49
Consolidated ICA refund of amount of tax for schedular payment
OP 50
Consolidated ICA refund relating to schedular income tax liability
Table O19: imputation credits of consolidated imputation groups
Table O20: imputation debits of consolidated imputation groups
Consolidated groups and FDP accounts
Introductory provisions
OP 51
FDP accounts of consolidated FDP groups
[Repealed]
OP 52
Choosing to stop being consolidated FDP group
[Repealed]
OP 53
When group company emigrates
[Repealed]
OP 54
When credits and debits arise only in consolidated FDP group accounts
[Repealed]
OP 55
Provisions applying to consolidated FDP groups
[Repealed]
FDP credits of consolidated FDP groups
OP 56
Consolidated FDPA payment of FDP
[Repealed]
OP 57
Consolidated FDPA payment of further FDP
[Repealed]
OP 58
Consolidated FDPA dividend derived with FDP credit
[Repealed]
OP 59
Consolidated FDPA group company’s credit
[Repealed]
OP 60
Consolidated FDPA credit transfer to company
[Repealed]
OP 61
Consolidated FDPA transfer from group’s CTR account
[Repealed]
OP 62
Consolidated FDPA transfer for net foreign attributed income
[Repealed]
OP 63
Consolidated FDPA reversal of tax advantage arrangement
[Repealed]
FDP debits of consolidated FDP groups
OP 64
Consolidated FDPA payment of dividend
[Repealed]
OP 65
Consolidated FDPA credit transfer by company
[Repealed]
OP 66
Consolidated FDPA refund of FDP
[Repealed]
OP 67
Consolidated FDPA overpayment of FDP
[Repealed]
OP 68
Consolidated FDPA refund of tax credit
[Repealed]
OP 69
Consolidated FDPA transfer to imputation credit account
[Repealed]
OP 70
Consolidated FDPA transfer to group’s CTR account
[Repealed]
OP 71
Consolidated FDPA group company’s debit
[Repealed]
OP 72
Consolidated FDPA breach of FDP ratio
[Repealed]
OP 73
Consolidated FDPA debit for loss of shareholder continuity
[Repealed]
OP 74
Consolidated FDPA debit for policyholder base FDP credits
[Repealed]
OP 75
Consolidated FDPA breach of FDP ratio by PCA company
[Repealed]
OP 76
Consolidated FDPA tax advantage arrangement
[Repealed]
OP 77
Consolidated FDPA final balance
[Repealed]
Table O21: FDP credits of consolidated FDP groups
Table O22: FDP debits of consolidated FDP groups
Consolidated groups and CTR credits
Introductory provisions
OP 78
CTR accounts of consolidated groups
[Repealed]
OP 79
When credits and debits arise only in CTR group accounts
[Repealed]
OP 80
Provisions applying to consolidated groups with CTR accounts
[Repealed]
CTR credits of consolidated groups
OP 81
Consolidated CTRA tax credit for conduit tax relief
[Repealed]
OP 82
Consolidated CTRA reduction of FDP
[Repealed]
OP 83
Consolidated CTRA dividend derived with CTR credit
[Repealed]
OP 84
Consolidated CTRA group company’s credit
[Repealed]
OP 85
Consolidated CTRA transfer from group’s FDP account
[Repealed]
OP 86
Consolidated CTRA reversal of tax advantage arrangement
[Repealed]
CTR debits of consolidated groups
OP 87
Consolidated CTRA payment of dividend
[Repealed]
OP 88
Consolidated CTRA transfer to group’s FDP account
[Repealed]
OP 89
Consolidated CTRA adjustment for conduit tax relief
[Repealed]
OP 90
Consolidated CTRA group company’s debit
[Repealed]
OP 91
Consolidated CTRA increase in resident shareholding
[Repealed]
OP 92
Consolidated CTRA breach of CTR ratio
[Repealed]
OP 93
Consolidated CTRA tax advantage arrangement
[Repealed]
OP 94
Consolidated CTRA final balance
[Repealed]
Consolidated groups’ FDP payments and refunds
OP 95
FDP payable for credits and debits in group’s CTR account
[Repealed]
OP 96
Refund on transfer from group’s FDP account
[Repealed]
Table O23: conduit tax relief credits of consolidated groups
Table O24: conduit tax relief debits of consolidated groups
Consolidated groups and branch equivalent tax accounts
Introductory provisions
OP 97
Branch equivalent tax accounts of consolidated BETA groups
[Repealed]
OP 98
Choosing to stop being consolidated BETA group
[Repealed]
OP 99
When credits and debits arise only in branch equivalent tax group accounts
[Repealed]
Branch equivalent tax credits of consolidated BETA groups
OP 100
Consolidated BETA payment of income tax on foreign income
[Repealed]
OP 101
Consolidated BETA payment of income tax
[Repealed]
OP 102
Consolidated BETA remaining debit balances
[Repealed]
OP 103
Consolidated BETA refund of FDP
[Repealed]
OP 104
Consolidated BETA credit for loss of shareholder continuity
[Repealed]
Treatment by consolidated BETA groups of BETA debits from conduit relief
OP 104B
Consolidated BETA group with debit balance, including debits from conduit relief, in certain income years
[Repealed]
Branch equivalent tax debits of consolidated BETA groups
OP 105
Consolidated BETA payment of FDP
[Repealed]
OP 106
Consolidated BETA reduction of FDP
[Repealed]
OP 107
Consolidated BETA refund of income tax
[Repealed]
OP 108
Consolidated BETA debit for loss of shareholder continuity
[Repealed]
Debit if credit balance at beginning of first affected income year
OP 108B
Consolidated BETA group with credit balance at beginning of first affected income year
[Repealed]
Table O25: branch equivalent tax credits of consolidated BETA groups
Table O26: branch equivalent tax debits of consolidated BETA groups
Consolidated groups and policyholder credit accounts
Introductory provision
OP 109
Policyholder credit accounts of consolidated groups
[Repealed]
Policyholder credits of consolidated groups
OP 110
Consolidated PCA transfer from imputation credit account
[Repealed]
OP 111
Consolidated PCA transfer from FDP account
[Repealed]
OP 112
Consolidated PCA group company’s credit
[Repealed]
OP 113
Consolidated PCA maximum deficit debit in FDP account
[Repealed]
OP 114
Consolidated PCA reduced deficit debit in FDP account
[Repealed]
Policyholder debits of consolidated groups
OP 115
Consolidated PCA payment of tax relating to policyholder base
[Repealed]
OP 116
Consolidated PCA transfer to imputation credit account
[Repealed]
Table O27: policyholder credits of consolidated groups
Table O28: policyholder debits of consolidated groups
Subpart OZ—Terminating provisions
OZ 1
No imputation credit for pre-imputation tax paid
OZ 2
No imputation debit for pre-imputation refund
OZ 3
Overpaid income tax for pre-imputation income year
OZ 4
Terminating modifications to debits for loss of shareholder continuity
OZ 5
ASCA lost excess available subscribed capital
OZ 6
ASCA redemption of unused investments
OZ 7
Memorandum accounts in transitional period
OZ 7B
Maori authority credit ratios for transitional period
OZ 8
Attaching imputation credits: maximum permitted ratio
OZ 9
Benchmark dividends: ratio change
OZ 10
Modifying ratios for imputation credits
OZ 11
Tax credits for imputation credits
OZ 12
Tax credits for non-resident investors
OZ 13
Fully credited dividends: modifying actual ratio
OZ 14
Dividends from qualifying companies
OZ 15
Attaching imputation credits and notional distributions: modifying amounts
OZ 16
BETA reductions
[Repealed]
OZ 17
CTRA reductions
[Repealed]
OZ 18
Credit-back of PCA balance
[Repealed]
Part R General collection rules
Subpart RA—General withholding and payment obligations
Introductory provisions
RA 1
What this Part does
RA 2
Amounts treated as income tax
Payment and withholding obligations
RA 3
Terminal tax obligations
RA 4
Provisional tax obligations
RA 5
Tax obligations for employment-related taxes
RA 6
Withholding and payment obligations for passive income
RA 6B
Withholding and payment obligations for retirement scheme contributions
RA 6C
Withholding and payment obligations for residential land
RA 7
Payment of tax by public authorities
RA 8
Liability of persons receiving payments or benefits
RA 9
Treatment of amounts withheld as received
RA 10
When obligations not met
RA 11
Adjustment to correct errors: certain underpayments
RA 12
Adjustment to correct errors: certain excess amounts
Payment dates
RA 13
Payment dates for terminal tax
RA 14
Payment dates for provisional tax
RA 15
Payment dates for interim and other tax payments
RA 16
Payment date when taxable activity ends
RA 17
Payment date when RWT-exempt status ends
RA 18
Payment date for emigrating companies
Refunds
RA 19
Refunds of excess amounts or when amounts mistakenly paid
Amalgamations
RA 20
Amalgamation of companies
Regulations
RA 21
Regulations
Application of other provisions
RA 22
Limits on application of other provisions for purposes of PAYE rules
RA 23
Application of other provisions for purposes of ESCT rules and NRWT rules
RA 24
Application of other provisions for purposes of RSCT rules
Subpart RB—Terminal tax
RB 1
Payment of terminal tax
RB 2
Income tax liability for non-filing taxpayers for non-resident passive income
[Repealed]
RB 3
Schedular income tax liability for filing taxpayers for non-resident passive income
RB 4
Using refunds to satisfy tax liabilities
Subpart RC—Provisional tax
Introductory provisions
RC 1
What this subpart does
RC 2
Provisional tax rules and their application
RC 3
Who is required to pay provisional tax?
RC 4
Choosing to pay provisional tax
Calculating provisional tax liability
RC 5
Methods for calculating provisional tax liability
RC 6
Standard method
RC 7
Estimation method
RC 7B
AIM method
RC 8
GST ratio method
Instalments of provisional tax
RC 9
Provisional tax payable in instalments
Table R1: Summary of instalment dates and calculation methods for provisional tax
RC 10
Calculating amount of instalment under standard and estimation methods
RC 10B
Calculating amount of instalment for periods using AIM method
RC 11
Calculating amount of instalment using GST ratio
RC 12
Voluntary payments
RC 13
Paying 2 instalments for tax year
RC 14
Paying 1 instalment for tax year
Requirements for using GST ratio
RC 15
Choosing to use GST ratio
RC 16
Who may use GST ratio?
RC 17
When GST ratio must not be used
RC 18
Changing calculation method
RC 19
Disposal of assets
Transitional years
RC 20
Calculating residual income tax in transitional years
RC 21
Paying provisional tax in transitional years
RC 22
Calculating instalments in transitional years: standard method
RC 23
Calculating instalments in transitional years: estimation method
RC 24
Calculating instalments in transitional years: GST ratio method
RC 25
Consequences of change in balance date
When persons start or stop paying GST, or change taxable periods
RC 26
Registering for GST or cancelling registration
RC 27
Payment of provisional tax instalments when GST cycle changed
Treatment of groups of companies and amalgamated companies
RC 28
Provisional tax rules and consolidated groups
RC 29
Residual income tax of consolidated groups
RC 30
Consolidated groups using estimation method
RC 31
Consolidated groups using GST ratio method
RC 32
Wholly-owned groups of companies
RC 33
Amalgamated companies: calculating residual income tax
Attribution rule for income from personal services
RC 34
Attribution rule for income from personal services
Credits
RC 35
Further income tax credited to provisional tax liability
RC 35B
Treatment of overpaid provisional tax instalments calculated using AIM method
Disaster relief
RC 36
Persons affected by adverse events
[Repealed]
Early-payment discounts
RC 37
Availability of early-payment discounts
RC 38
Crediting income tax with early-payment discount
RC 39
Credit treated as payment of income tax
RC 40
Some definitions
Subpart RD—Employment-related taxes
Introductory provision
RD 1
What this subpart does
PAYE rules and PAYE income payments
Introductory provisions
RD 2
PAYE rules and their application
RD 3
PAYE income payments
RD 3B
Shareholders who are employees, for some companies: income other than PAYE
RD 3C
Shareholders who are employees, for some companies: PAYE and income other than PAYE
RD 4
Payment of amounts of tax to Commissioner
Types of PAYE income payments
RD 5
Salary or wages
RD 6
Certain benefits and payments
RD 7
Extra pay
RD 7B
Treatment of employee share schemes
RD 8
Schedular payments
RD 8B
Treatment of PAYE-related overpayments
Calculating amounts of tax
RD 9
Maximum amount
RD 10
Amounts of tax for PAYE income payments
RD 10B
Amounts of tax for schedular payments
RD 10C
Calculating amounts of tax following changes to rates or thresholds
RD 11
Amount of tax in certain circumstances
Adjustments for certain PAYE income payments
RD 12
Multiple payments of salary or wages
RD 13
Advance payments
RD 13B
Adjustments for payroll donations
RD 14
Changes to tax rates for salary or wages
[Repealed]
RD 15
Payments of salary or wages in pay periods
RD 16
Payments to private domestic workers
RD 17
Payment of extra pay with other PAYE income payments
RD 18
Schedular payments without notification
[Repealed]
RD 19
Schedular payments to non-resident entertainers
RD 20
Schedular payments to subcontractors
Paying amounts of tax
RD 21
When amounts of tax not withheld or payment insufficient
RD 22
Providing employment income information to Commissioner
RD 23
Bonds given by employers of certain non-resident employees
RD 24
Exemptions for non-resident contractors
Fringe benefit tax (FBT) rules and fringe benefits
Introductory provisions
RD 25
FBT rules and their application
RD 26
Liability for FBT
Value of fringe benefits
RD 27
Determining fringe benefit values
RD 28
Private use of motor vehicle: calculation methods
RD 29
Private use of motor vehicle: formulas
RD 30
Private use of motor vehicle: 24-hour period
RD 31
Motor vehicle test period
RD 32
Replacement motor vehicles
RD 33
Subsidised transport
RD 34
Employment-related loans: value using prescribed interest rates
RD 35
Employment-related loans: value using market interest rates
RD 36
Repayment of employment-related loans
RD 37
Contributions to superannuation schemes
RD 38
Contributions to funds, trusts, and insurance premiums
RD 39
Benefits provided by charitable organisations
RD 40
Goods
RD 41
Services
RD 42
Goods at staff discount
RD 43
Goods on special with staff discount
RD 44
Goods disposed of by group companies
RD 45
Unclassified benefits
RD 46
Adjustments for unclassified benefits on amalgamation
Attributing fringe benefits to employees
RD 47
Attribution of certain fringe benefits
RD 48
When attributed benefits provided to more than 1 employee
RD 49
Application of thresholds to attributed benefits
RD 50
Employer’s liability for attributed benefits
RD 51
Calculation of all-inclusive pay
RD 52
Calculation for certain employees when information lacking
RD 53
Pooling non-attributed benefits
Taxable value of fringe benefits
RD 54
Value of and payments towards fringe benefits
RD 55
Private use of motor vehicle: taxable value in cases of part ownership
RD 56
Private use of motor vehicle: when schedular value not used
RD 57
Private use of motor vehicle: when schedular value used
Options for payment of FBT
RD 58
Single rate option
RD 59
Alternate rate option
RD 60
Close company option
RD 61
Small business option
RD 62
Changes in payment periods
RD 62B
Obligations of cross-border employees when FBT liability not paid
RD 63
When employer stops employing staff
Employer’s superannuation contribution tax (ESCT) rules and employer’s superannuation contributions
Introductory provisions
RD 64
ESCT rules and their application
RD 65
Employer’s superannuation cash contributions
RD 66
Complying fund rules
[Repealed]
Calculating amounts of tax
RD 67
Calculating amounts of tax for employer’s superannuation cash contributions
RD 67B
Calculating amounts of tax following changes to rates or thresholds
RD 68
Choosing to have amount treated as salary or wages
RD 69
Choosing different rates for employer’s superannuation cash contributions
[Repealed]
RD 70
Calculating amounts of tax on failure to withhold
RD 71
Amounts of tax treated as paid to and received by superannuation funds
RD 71B
Obligations of cross-border employees when amounts of tax not paid
Tax on certain withdrawals from superannuation funds
RD 72
Recovery of tax paid by superannuation funds
[Repealed]
Subpart RE—Withholding tax on resident passive income (RWT)
Introductory provisions
RE 1
RWT rules and their application
RE 2
Resident passive income
Withholding obligations
RE 3
Obligation to withhold RWT
RE 4
Persons who have withholding obligations
RE 5
No withholding obligation in certain circumstances
RE 6
When obligation to withhold unreasonable
RE 7
When resident passive income paid to trustees
RE 8
When resident passive income paid to nominees
RE 9
Agents’ or trustees’ obligations in relation to certain dividends
RE 10
Special rule relating to payments of interest
RE 10B
Amounts withheld from distributions to holders of FIF attributing interests
RE 10C
Obligations of custodial institutions in relation to certain payments of investment income
RE 11
Notification by companies
Calculating amounts of tax
RE 12
Interest
RE 13
Dividends other than non-cash dividends
RE 14
Non-cash dividends other than certain share issues
RE 14B
Combined cash and non-cash dividends
RE 14C
Non-cash dividends distributed through intermediaries
RE 15
Bonus issues in lieu and shares issued under profit distribution plans
RE 16
Taxable Maori authority distributions
RE 17
Replacement payments under share-lending arrangements
RE 18
Payments made by RWT proxies
RE 18B
Capital value increase under inflation-indexed instruments: RWT cap
RE 19
Choosing other rates
Paying amounts of tax
RE 20
Paying RWT
RE 21
Basis for payment of RWT
RE 22
When payment treated as non-resident passive income
RE 23
When amount of tax treated as FDP credit
[Repealed]
RE 24
When amount of tax treated as Maori authority credit
RE 25
When amount of tax treated as imputation credit
RE 26
Payment by proxy
Persons with RWT-exempt status
RE 27
RWT-exempt status
RE 28
When RWT-exempt status ends
RE 29
Establishing whether persons have RWT-exempt status
RE 30
When unincorporated bodies have RWT-exempt status
Subpart RF—Withholding tax on non-resident passive income (NRWT)
Introductory provisions
RF 1
NRWT rules and their application
RF 2
Non-resident passive income
RF 2B
Non-resident financial arrangement income: outline and concepts
RF 2C
Meaning of non-resident financial arrangement income
Withholding obligations
RF 3
Obligation to withhold amounts of tax for non-resident passive income
RF 4
Non-resident passive income received by agents and others
RF 5
When amounts of tax already withheld
RF 6
When amounts of tax not withheld or partly withheld
Calculating amounts of tax
RF 7
General rate for NRWT
RF 8
Certain dividends
RF 9
When dividends fully imputed
RF 10
Non-cash dividends
RF 11
Dividends paid to companies associated with non-residents
RF 11B
Dividends paid by companies in certain situations
RF 11BB
Certain dividends paid to dual resident companies
RF 11C
Interest paid by non-resident companies to non-residents
RF 12
Interest paid by approved issuers or transitional residents
RF 12B
Interest derived jointly with residents
RF 12C
Amount derived from non-resident life insurer becoming resident
Certain financial arrangements involving related-party debt
RF 12D
Determining amount of non-resident financial arrangement income
RF 12E
When non-resident financial arrangement income treated as paid
RF 12F
Adjustments: first year additional amounts
RF 12G
Choosing to treat income as non-resident financial arrangement income
RF 12H
Meaning of related-party debt
RF 12I
Concepts used for definition of related-party debt
RF 12J
Treatment of certain payments made under indirect associated funding arrangements
Paying amounts of tax
RF 13
Basis for payment of amounts of tax for non-resident passive income
RF 14
Treatment of FDP credits
[Repealed]
RF 15
Commissioner’s power to vary amounts of tax
RF 16
Relationship with RSCT rules
Subpart RG—Payments for foreign dividends (FDP)
[Repealed]
Introductory provisions
RG 1
FDP rules and their application
[Repealed]
RG 2
Foreign dividends
[Repealed]
Obligation to make payments
RG 3
Obligation to pay FDP
[Repealed]
Calculation of payments
RG 4
Calculating amount of FDP
[Repealed]
Adjustments to payments
RG 5
Credit balance in branch equivalent tax account
[Repealed]
RG 6
Using loss balances
[Repealed]
RG 7
Reduction of payments for conduit tax relief
[Repealed]
Subpart RH—Withholding tax on retirement scheme contributions
RH 1
RSCT rules and their application
RH 2
Retirement scheme contributions
RH 3
Retirement savings schemes
RH 4
Retirement scheme contributors
Calculating amounts of tax
RH 5
Calculating amounts of tax for retirement scheme contribution
RH 6
Calculating amounts of tax on failure to withhold
Subpart RL—Residential land withholding tax
RL 1
Residential land withholding tax
RL 2
Vendors: who must pay, and how?
RL 3
Associated persons: who must pay, and how?
RL 4
How much RLWT?
RL 5
Paying RLWT
RL 6
Commissioner repaying RLWT
Subpart RM—Refunds
Introductory provision
RM 1
What this subpart does
Refunds for overpaid amounts
RM 2
Refunds for overpaid tax
RM 3
Refunds for overpaid FDP
[Repealed]
RM 4
Overpayment on amended assessment
RM 5
Overpayment on income statements
[Repealed]
RM 6
Refunds after 4-year period ends
[Repealed]
RM 6B
Refunds for overpaid AIM method instalments
RM 7
Refunds to PAYE intermediaries
RM 8
Overpaid RWT or NRWT
RM 9
Calculations for attributed and non-attributed fringe benefits
Use of refunds
RM 10
Using refund to satisfy tax liability
RM 11
Using GST refund to pay instalment of provisional tax
RM 12
Reduction in provisional tax liability
Limits on refunds and transfers
ICA companies
RM 13
Limits on refunds for ICA companies
RM 14
Limits on refunds when company stops being ICA company
RM 15
Changes in credit balances
RM 16
Treatment of amounts not refunded
RM 17
Treatment of further income tax paid
Companies receiving foreign dividends
RM 18
Limits on refunds related to foreign dividends
[Repealed]
RM 19
Treatment of financial arrangements
[Repealed]
RM 20
Treatment of amounts not refunded
[Repealed]
RM 21
Refunds when loss balances used to reduce net income
[Repealed]
Maori authorities
RM 22
Limits on refunds for Maori authorities
RM 23
Limits on refunds when Maori authority stops being Maori authority
RM 24
Increase in credit balances
RM 25
Treatment of amounts not refunded
RM 26
Treatment of further income tax paid
RM 27
Application when no credits arise
Persons with policyholder credit accounts
RM 28
Limits on refunds for PCA persons
[Repealed]
RM 29
Limits on refunds when person no longer PCA person
[Repealed]
RM 30
Changes in credit balances
[Repealed]
RM 31
Treatment of amounts not refunded
[Repealed]
Qualifying companies
RM 32
Application of sections RM 13 to RM 17 to qualifying companies
Certain unit trusts and group investment funds
RM 33
Limits on refunds for certain unit trusts and group investment funds
Subpart RP—Intermediaries
Introductory provision
RP 1
What this subpart does
PAYE intermediaries
Obligations and treatment of PAYE intermediaries
RP 2
PAYE intermediaries
RP 3
Requirements for listed PAYE intermediaries
[Repealed]
RP 4
Payment of subsidies to certain PAYE intermediaries
[Repealed]
RP 5
Subsidy claims
[Repealed]
RP 6
Operation of PAYE intermediaries’ trust accounts
Employers’ responsibilities
RP 7
General responsibilities of employers
RP 8
Information for PAYE intermediaries
RP 9
Authorised transfers from accounts
RP 10
When transfers from accounts not authorised
RP 11
Employer’s superannuation cash contributions
RP 12
When payments made directly to employees
PAYE intermediaries’ responsibilities
RP 13
General responsibilities of PAYE intermediaries
RP 14
Collection, payment, and information requirements
RP 15
When employers have authorised transfers from accounts
RP 16
Obligations for employer’s superannuation contributions
Tax pooling intermediaries
RP 17
Tax pooling intermediaries
RP 17B
Tax pooling accounts and their use
RP 18
Deposits in tax pooling accounts
RP 19
Transfers from tax pooling accounts
RP 19B
Transfers for certain expected tax liabilities
RP 20
Declining, amending, or reversing transfers
RP 21
Refunds from tax pooling accounts
Subpart RZ—Terminating provisions
Provisional tax
RZ 1
Certain elections to become person with provisional tax liability
RZ 2
Amount of provisional tax based on 1997–98 or earlier tax year
RZ 3
Standard method: 2010–11 to 2012–13 income years
RZ 4
GST ratio method: 2010–11 to 2013–14 income years
RZ 5
Calculating amounts under standard method: 2010–11 to 2012–13 income years
RZ 5B
Standard method: new personal tax rate persons from 1 October 2008 to end 2009–10 income year
[Repealed]
RZ 5C
GST ratio method: new personal tax rate persons from 1 October 2008 to end 2009–10 income year
[Repealed]
RZ 5D
Standard method or GST method: transition for Maori authorities
Refunds
RZ 6
Limits on refunds: transitional dates
Withdrawal income
RZ 7
Withdrawal income
[Repealed]
RZ 8
Payment and rate of withdrawal tax
[Repealed]
RZ 9
Relief in certain cases
[Repealed]
RZ 10
Recovery of amounts payable to Commissioner
[Repealed]
Refunds for life insurers
RZ 11
Refunds for life insurers
Tax pooling intermediaries
RZ 12
Adjustments to interest in requests made after commencement
Non-resident financial arrangement income
RZ 13
Treatment of prepayments
RZ 14
Listed PAYE intermediaries: transitional provision
RZ 15
Treatment of certain refunds made on income statements: 1 April 2008 to 31 March 2019
RZ 16
Treatment of certain refunds not paid within 4-year period: 1 April 2008 to 31 March 2013
Part Y Definitions and related matters
Subpart YA—General definitions
YA 1
Definitions
YA 2
Meaning of income tax varied
YA 3
Treatment of qualifying company election tax, FBT, FDP penalty tax, imputation penalty tax, and withdrawal tax
[Repealed]
YA 4
General rules for giving information or communicating matters
YA 5
General rule: capacity of trustees
Subpart YB—Associated persons and nominees
Table Y1: Associated person rules
Associated persons
YB 1
What this subpart does
YB 2
Two companies
YB 3
Company and person other than company
YB 4
Two relatives
YB 5
Person and trustee for relative
YB 6
Trustee and beneficiary
YB 7
Two trustees with common settlor
YB 8
Trustee and settlor
YB 9
Settlor and beneficiary
YB 10
Who is a settlor?
YB 11
Trustee and person with power of appointment or removal
YB 12
Partnership and partner
YB 13
Look-through companies and owners of interests
YB 14
Tripartite relationship
YB 15
Exceptions for employee trusts
YB 16
Exceptions for certain trusts and charitable organisations
YB 17
Partnerships: partnership and associate of partner
[Repealed]
YB 18
Persons habitually acting together: 1988 version provisions
[Repealed]
YB 19
Person and controlled non-profit organisation: 1990 version provisions
[Repealed]
YB 20
Some definitions
[Repealed]
Nominees
YB 21
Transparency of nominees
Subpart YC—Measurement of company ownership
Control
YC 1
Meaning of control
[Repealed]
Voting and market value interests
YC 2
Voting interests
YC 3
Market value interests
YC 4
Look-through rule for corporate shareholders
YC 5
Treatment of special corporate entities
YC 5B
Treatment of mixed-ownership enterprises
YC 6
Disregarding certain securities
Voting and market value interests: modifications for continuity provisions
YC 7
When sections YC 8 to YC 19B apply
YC 8
Death of share or option holder
YC 9
Shares or options held by trustees
YC 10
Shareholders holding less than 10% direct interests
YC 11
No look-through rule for companies in certain cases
YC 12
Public unit trusts
YC 13
Corporate spin-outs
YC 14
Disregarding concessionary rules
YC 15
Directors’ knowledge of failure to meet requirements of continuity provision
YC 16
Disregarding market value changes
YC 17
Demutualisation of insurers
YC 18
Reverse takeovers
YC 18B
Corporate reorganisations not affecting economic ownership
YC 18C
Railways restructure not affecting Crown economic ownership
YC 19
Legislative conversion of foreign company of proprietors
YC 19B
Treatment when certain trusts terminated
YC 20
Credit account continuity provisions: excluded fixed rate securities
Subpart YD—Residence and source in New Zealand
Residence
YD 1
Residence of natural persons
YD 2
Residence of companies
YD 3
Country of residence of foreign companies
YD 3BA
Country of residence of joint trustees
YD 3B
Crown
Source
YD 4
Classes of income treated as having New Zealand source
YD 4B
Meaning of permanent establishment
YD 5
Apportionment of income derived partly in New Zealand
YD 5B
Attribution of income and expenditure to permanent establishment in New Zealand
YD 6
Apportionment of income from sea transport
YD 7
Apportionment of film rental income
[Repealed]
YD 8
Apportionment of premiums derived by non-resident general insurers
YD 8B
Apportionment of life insurance premiums derived by Lloyd’s of London
Conduit tax relief companies: special residence rules
YD 9
Residence of CTR company shareholders
[Repealed]
YD 10
Meaning of CTR holding company
[Repealed]
YD 11
Meaning of CTR group member
[Repealed]
Subpart YE—References to balance dates and years
YE 1
References to balance dates and years
Subpart YF—Currency conversion
YF 1
General rules for currency conversion
YF 2
Other rules for currency conversion: approved alternatives
Subpart YZ—Terminating provisions
YZ 1
Source rule for interest
YZ 2
Saving of effect of section 394L(4A) of Income Tax Act 1976
YZ 3
Saving effect of section DF 5 of Income Tax Act 1994
YZ 4
Saving of effect of certain terms defined in Canterbury Earthquake Recovery Act 2011
YZ 5
New Zealand Memorial Museum Trust — Le Quesnoy: sunset
Part Z Repeals, amendments, and savings
ZA 1
Repeals
ZA 2
Consequential amendments to other enactments
ZA 3
Transitional provisions
ZA 4
Saving of binding rulings
ZA 5
Saving of accrual determinations
ZA 6
Comparative tables of old and new provisions
Schedule 1 Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits
Schedule 2 Basic tax rates for PAYE income payments
Schedule 3 Payment of provisional tax and terminal tax
Schedule 4 Standard rates of tax for schedular payments
Schedule 5 Fringe benefit values for motor vehicles
Schedule 6 Prescribed rates: PIE investments and retirement scheme contributions
Schedule 10 Straight-line equivalents of diminishing value rates of depreciation
Schedule 11 New banded rates of depreciation
Schedule 12 Old banded rates of depreciation
Schedule 13 Depreciable land improvements
Schedule 14 Depreciable intangible property
Schedule 15 Excepted residential land
Schedule 17 Types and classes of livestock
Schedule 18 Categories of livestock for which national standard costs to be declared
Schedule 18B Premier yearling sales
Schedule 18C Breeds and classes of bloodstock
Schedule 19 Expenditure in avoiding, remedying, or mitigating detrimental effects of discharge of contaminant or making of noise
Schedule 20 Expenditure on farming, horticultural, aquacultural, and forestry improvements
Schedule 21 Excluded activities for research and development activities tax credits
Schedule 21 Expenditure and activities related to research and development
[Repealed]
Schedule 21B Expenditure or loss for research and development tax credits
Schedule 22 Proscribed R&D activities
Schedule 23 Meaning of permanent establishment
Schedule 24 International tax rules: grey list countries
Schedule 25 Foreign investment funds
Schedule 26 Low tax jurisdictions or territories
[Repealed]
Schedule 27 Countries and types of income with unrecognised tax
Schedule 28 Requirements for complying fund rules
Schedule 29 Portfolio investment entities: listed investors
Schedule 31 Annualised equivalent amount for Part M
Schedule 32 Recipients of charitable or other public benefit gifts
Schedule 33 Default fractions of foreign superannuation withdrawals
Schedule 34 Community housing trusts and companies: income and assets of beneficiaries and clients
Schedule 35 Public purpose Crown-controlled companies
Schedule 36 Government enterprises
Schedule 37 Statutory producer boards
Schedule 38 Acts exempting income from tax: income included in family scheme income
Schedule 39 Items for purposes of definition of special excluded depreciable property
[Repealed]
Schedule 48 Enactments repealed
Schedule 49 Enactments amended
Schedule 50 Amendments to Tax Administration Act 1994
Schedule 51 Identified changes in legislation
Schedule 52 Comparative tables of old and rewritten provisions
1 Title
1 Title
1 Title
1 Title
1 Title
1 Title
1 Title
1 Title
1 Title
1 Title
Notes
Contents
A 1
Title
A 2
Commencement
Part A Purpose and interpretation
AA 1
Purpose of Act
AA 2
Interpretation
AA 3
Definitions
AA 4
Crown bound
Part B Core provisions
Subpart BA—Purpose
BA 1
Purpose
Subpart BB—Income tax and resulting obligations
BB 1
Imposition of income tax
BB 2
Main obligations
BB 3
Overriding effect of certain matters
Subpart BC—Calculating and satisfying income tax liabilities
BC 1
Non-filing and filing taxpayers
BC 2
Annual gross income
BC 3
Annual total deduction
BC 4
Net income and net loss
BC 5
Taxable income
BC 6
Income tax liability of filing taxpayer
BC 7
Income tax liability of person with schedular income
BC 8
Satisfaction of income tax liability
Subpart BD—Income, deductions, and timing
BD 1
Income, exempt income, excluded income, non-residents’ foreign-sourced income, and assessable income
BD 2
Deductions
BD 3
Allocation of income to particular income years
BD 4
Allocation of deductions to particular income years
Subpart BE—Withholding liabilities
BE 1
Withholding liabilities
Subpart BF—Other obligations
BF 1
Other obligations
Subpart BG—Avoidance
BG 1
Tax avoidance
Subpart BH—Double tax agreements
BH 1
Double tax agreements
Part C Income
Subpart CA—General rules
CA 1
Amounts that are income
CA 2
Amounts that are exempt income or excluded income
Subpart CB—Income from business or trade-like activities
Business generally
CB 1
Amounts derived from business
CB 2
Amounts received on disposal of business assets that include trading stock
Schemes for profit
CB 3
Profit-making undertaking or scheme
Personal property
CB 4
Personal property acquired for purpose of disposal
CB 5
Business of dealing in personal property
Land
CB 6A
Disposal within 10 years: Bright-line test for residential land
CB 6AB
Residential land transferred in relation to certain family trusts and other capacities
CB 6AC
Residential land transferred in relation to certain Māori family trusts
CB 6AE
Certain transfers of residential land included in settlement of claim under the Treaty of Waitangi
CB 6
Disposal: land acquired for purpose or with intention of disposal
CB 7
Disposal: land acquired for purposes of business relating to land
CB 8
Disposal: land used for landfill, if notice of election
CB 9
Disposal within 10 years: land dealing business
CB 10
Disposal within 10 years: land development or subdivision business
CB 11
Disposal within 10 years of improvement: building business
CB 12
Disposal: schemes for development or division begun within 10 years
CB 13
Disposal: amount from major development or division and not already in income
CB 14
Disposal: amount from land affected by change and not already in income
CB 15
Transactions between associated persons
CB 15B
When land acquired
Exclusions for bodies controlled by local authorities
CB 15C
Council-controlled organisations and other companies
Exclusions for Kāinga Ora–Homes and Communities and wholly-owned group
CB 15D
Kāinga Ora–Homes and Communities and wholly-owned group
Exclusions for residential land
CB 16A
Main home exclusion for disposal within 10 years
CB 16
Residential exclusion from sections CB 6 to CB 11
CB 17
Residential exclusion from sections CB 12 and CB 13
CB 18
Residential exclusion from section CB 14
Exclusions for business premises
CB 19
Business exclusion from sections CB 6 to CB 11
CB 20
Business exclusion from sections CB 12 and CB 13
Exclusions for farm land
CB 21
Farm land exclusion from sections CB 12 and CB 13
CB 22
Farm land exclusion from section CB 14
Exclusion for investment land
CB 23
Investment exclusion from sections CB 12 and CB 13
CB 23B
Land partially disposed of or disposed of with other land
Timber
CB 24
Disposal of timber or right to take timber
CB 25
Disposal of land with standing timber
Investments
CB 26
Disposal of certain shares by portfolio investment entities
Farming, forestry, or fishing
CB 27
Income equalisation schemes
CB 27B
Entering partners’ livestock income
[Repealed]
Environmental restoration
CB 28
Environmental restoration accounts
Minerals
CB 29
Disposal of minerals
Intellectual property
CB 30
Disposal of patent applications or patent rights
Transfer of business
CB 31
Disposal of business: transferred employment income obligations
Stolen property
CB 32
Property obtained by theft
Look-through companies
CB 32B
Owners of look-through companies
CB 32C
Dividend income for first year of look-through company
Mutual associations
CB 33
Amounts derived by mutual associations
CB 34
Amounts derived by members from mutual associations
Partners and partnerships
CB 35
Amounts of income for partners
Emissions units under Climate Change Response Act 2002
CB 36
Disposal of emissions units
Subpart CC—Income from holding property (excluding equity)
Land use
CC 1
Land
CC 1B
Consideration relating to grant, renewal, extension, or transfer of leasehold estate or licence
CC 1C
Consideration for agreement to surrender leasehold estate or terminate licence
CC 2
Non-compliance with covenant for repair
Financial instruments
CC 3
Financial arrangements
CC 4
Payments of interest
CC 5
Annuities
CC 6
Prizes received under Building Societies Act 1965
CC 7
Consideration other than in money
CC 8
Use of money interest payable by Commissioner
CC 8B
Certain commercial bills: non-resident holders
Royalties
CC 9
Royalties
CC 10
Films
Finance leases
CC 11
Lessee acquiring lease asset on expiry of term of lease
CC 12
Lessor acquiring lease asset on expiry of term of lease
Hire purchase agreements
CC 13
Amounts paid in income years after hire purchase agreement ends
IFRS leases
CC 14
NZ IFRS 16 leases
Subpart CD—Income from equity
Income
CD 1
Dividend
CD 2
Distribution excluded from being dividend
What is a dividend?
CD 3
Meaning of dividend
CD 4
Transfers of company value generally
CD 5
What is a transfer of company value?
CD 6
When is a transfer caused by a shareholding relationship?
CD 7
Bonus issues in lieu of dividend
CD 7B
Shares issued under profit distribution plans
CD 8
Elections to make bonus issue into dividend
CD 9
Interests in money or property of foreign unit trust
CD 10
Bonus issue by foreign unit trust instead of money or property
CD 11
Avoidance arrangements
CD 12
Superannuation schemes entering trust rules
CD 13
Notional distributions of producer boards and co-operative companies
CD 14
Notional distributions of emigrating companies
CD 15
Tax credits linked to dividends
CD 16
Certain dividends not increased by tax credits
CD 17
Credit transfer notice
CD 18
Dividend reduced if foreign tax paid on company’s income
CD 19
Foreign tax credits and refunds linked to dividends
CD 20
Benefits of shareholder-employees or directors
CD 21
Attributed repatriations from controlled foreign companies
[Repealed]
What is not a dividend?
CD 22
Returns of capital: off-market share cancellations
CD 23
Ordering rule and slice rule
CD 23B
Returns of capital: shares repurchased under profit distribution plans
CD 24
Returns of capital: on-market share cancellations
CD 25
Treasury stock acquisitions
CD 26
Capital distributions on liquidation or emigration
CD 27
Property made available intra-group
CD 28
Transfers of certain excepted financial arrangements within wholly-owned groups
CD 29
Non-taxable bonus issues
CD 29B
Issues to shareholders of rights to subscribe for or sell back shares
CD 29C
Transfers to shareholders by ASX-listed Australian company of shares in subsidiary
CD 30
Transfer by unit trust of legal interest after beneficial interest vests
CD 31
Flat-owning companies
CD 32
Employee benefits
CD 33
Payments corresponding to notional distributions of producer boards and co-operative companies
CD 34
Distribution to member of co-operative company based on member’s transactions
[Repealed]
CD 34B
Distributions to members of co-operative companies
CD 35
Resident’s restricted amalgamations
CD 36
Foreign investment fund income
CD 36B
Foreign superannuation withdrawals and pensions from foreign superannuation scheme
CD 37
Maori authority distributions
Calculation rules
CD 38
General calculation rule for transfers of company value
CD 39
Calculation of amount of dividend when property made available
CD 40
Adjustment if dividend recovered by company
CD 41
Adjustment if amount repaid later
CD 42
Adjustment if additional consideration paid
CD 43
Available subscribed capital (ASC) amount
CD 44
Available capital distribution amount
Attributed repatriation calculation rules
CD 45
When does a person have attributed repatriation from a controlled foreign company?
[Repealed]
CD 46
New Zealand repatriation amount
[Repealed]
CD 47
New Zealand property amount
[Repealed]
CD 48
Cost of tangible property
[Repealed]
CD 49
Cost of associated party equity
[Repealed]
CD 50
Outstanding balances of financial arrangements
[Repealed]
CD 51
Property transfers between associated persons
[Repealed]
CD 52
Unrepatriated income balance
[Repealed]
Prevention of double taxation
CD 53
Prevention of double taxation of share cancellation dividends
Returning share transfers
CD 54
Replacement payments
Subpart CE—Employee or contractor income
Employment income
CE 1
Amounts derived in connection with employment
CE 1B
General rule: accommodation provided by employers
CE 1C
Exception: overseas accommodation
CE 1D
Exception: accommodation provided by Defence Force
CE 1E
Exception: accommodation provided to ministers of religion
CE 1F
Treatment of amounts derived by cross-border employees
CE 2
Benefits under employee share schemes
CE 3
Restrictions on disposal of shares under share purchase agreements
[Repealed]
CE 4
Adjustments to value of benefits under share purchase agreements
[Repealed]
Definitions
CE 5
Meaning of expenditure on account of an employee
CE 6
Trusts are nominees
CE 7
Meaning of employee share scheme
CE 7B
Meaning of share scheme taxing date
CE 7C
Meaning of employee share scheme beneficiary
CE 7CB
Meaning of market value
CE 7D
Meaning of replacement employee share scheme
Attributed income
CE 8
Attributed income from personal services
Restrictive covenants and exit inducement payments
CE 9
Restrictive covenants
CE 10
Exit inducements
Income protection insurance
CE 11
Proceeds from claims under policies of income protection insurance
Tax credits
CE 12
Tax credits for personal service rehabilitation payments
Subpart CF—Income from living allowances, foreign superannuation, compensation, and government grants
CF 1
Benefits, pensions, compensation, and government grants
CF 2
Remission of specified suspensory loans
CF 3
Withdrawals from foreign superannuation scheme
Subpart CG—Recoveries
CG 1
Amount of depreciation recovery income
CG 2
Remitted amounts
CG 2B
Remitted amounts on discharge from bankruptcy
[Repealed]
CG 2C
Remitted and other amounts: companies in liquidation
CG 2D
Remitted and other amounts: companies leaving groups
CG 2E
Remitted and other amounts: income apportionment
CG 3
Bad debt repayment
CG 4
Receipts for expenditure or loss from insurance, indemnity, or otherwise
CG 5
Recoveries or receipts by employers from superannuation schemes
CG 5B
Receipts from insurance, indemnity, or compensation for interruption or impairment of business activities
CG 6
Receipts from insurance, indemnity, or compensation for trading stock
CG 7
Recoveries after deduction of payments under lease
CG 7B
Disposals or applications after earlier deductions
CG 7C
Disposal or rerecognition of derecognised non-depreciable assets
CG 8
Capital contributions
CG 8B
Recoveries after deductions for high-priced bloodstock removed from New Zealand
CG 8C
Recoveries after deductions for high-priced bloodstock disposed of to non-residents
CG 9
Recovery of deductions for aircraft engine overhaul
Subpart CH—Adjustments
Matching rules: revenue account property, prepayments, and deferred payments
CH 1
Adjustment for closing values of trading stock, livestock, and excepted financial arrangements
CH 2
Adjustment for prepayments
CH 3
Adjustment for deferred payment of employment income
Change to accounting practice
CH 4
Adjustment for change to accounting practice
Goods and services tax (GST)
CH 5
Adjustment for GST
Finance leases
CH 6
Adjustments for certain finance and operating leases
Avoidance and non-market transactions
CH 7
Adjustment for avoidance arrangements
CH 8
Market value substituted
Interest apportionment on thin capitalisation
CH 9
Interest apportionment: excess debt entity
CH 10
Interest apportionment: reporting bank
CH 10B
Interest apportionment: public project debt
Expenditure other than for entities’ purposes
CH 11
Te Awa Tupua and Te Pou Tupua
Financial instruments and hybrid mismatches
CH 12
Income from hybrid mismatch arrangement
Feasibility expenditure clawback
CH 13
Feasibility expenditure clawback
Subpart CO—Income from voluntary activities
CO 1
Income from voluntary activities
Subpart CP—Income from portfolio investment entities
CP 1
Attributed income of investors in multi-rate PIEs
Subpart CQ—Attributed income from foreign equity
Attributed controlled foreign company income
CQ 1
Attributed controlled foreign company income
CQ 2
When attributed CFC income arises
CQ 3
Calculation of attributed CFC income
Foreign investment fund income
CQ 4
Foreign investment fund income
CQ 5
When FIF income arises
CQ 6
Calculation of FIF income
CQ 7
Treatment of attributing interests subject to returning share transfer
[Repealed]
Subpart CR—Income from insurance
CR 1
Policyholder base income of life insurer
CR 2
Shareholder base income of life insurer
CR 3
Income of non-resident general insurer
CR 3B
Lloyd’s of London: income from life insurance premiums
CR 4
Income for general insurance outstanding claims reserve
Subpart CS—Superannuation funds
[Repealed]
Withdrawals
CS 1
Withdrawals
[Repealed]
Exclusions
CS 2
Exclusions of withdrawals of various kinds
[Repealed]
CS 3
Exclusion of withdrawal on grounds of hardship
[Repealed]
CS 4
Exclusion of withdrawal to settle division of relationship property
[Repealed]
CS 5
Exclusion of withdrawal paid as annuity or pension
[Repealed]
CS 6
Exclusion of withdrawal on partial retirement
[Repealed]
CS 7
Exclusion of withdrawal when member ends employment
[Repealed]
CS 8
Exclusion of withdrawal when member ends employment: lock-in rule
[Repealed]
CS 9
Exclusion of withdrawal from defined benefit fund when member ends employment
[Repealed]
CS 10
When member treated as not ending employment
[Repealed]
CS 10B
Exclusion of permitted withdrawals from KiwiSaver schemes and complying superannuation funds
[Repealed]
Transfers to or from superannuation funds and superannuation schemes
CS 11
Transfer by superannuation fund to another superannuation fund
[Repealed]
CS 12
Transfer from superannuation scheme to superannuation fund
[Repealed]
CS 13
Investment by superannuation fund in another superannuation fund
[Repealed]
Treatment of amounts when superannuation fund becomes superannuation scheme or vice versa
CS 14
Superannuation fund becomes superannuation scheme
[Repealed]
CS 15
Superannuation fund becomes foreign superannuation scheme
[Repealed]
CS 16
Superannuation scheme becomes superannuation fund
[Repealed]
Treatment of distributions when superannuation fund wound up
CS 17
Superannuation fund wound up
[Repealed]
Treatment of loans to members
CS 18
Value of loan treated as fund income
[Repealed]
Subpart CT—Income from petroleum mining
CT 1
Disposal of exploratory material or petroleum mining asset
CT 2
Damage to assets
CT 3
Exploratory well used for commercial production
CT 4
Partnership interests and disposal of part of asset
CT 5
Petroleum mining operations outside New Zealand
CT 5B
Resuming commercial production
Definitions
CT 6
Meaning of petroleum miner
CT 6B
Meaning of petroleum mining operations
CT 7
Meaning of petroleum mining asset
Subpart CU—Income from mineral mining
CU 1
Mineral miner’s income
CU 2
Treatment of mining land
CU 3
Disposal of mineral mining assets
CU 4
Recovery of certain expenditure
CU 5
Partnership interests and disposal of part of asset
Definitions
CU 6
Meaning of mineral miner
CU 7
Some definitions
CU 8
Meaning of listed industrial mineral
CU 9
Some definitions
CU 10
Mining asset used to derive income other than income from mining
[Repealed]
CU 11
Meaning of asset for sections CU 3 to CU 10
[Repealed]
CU 12
Application of sections to resident mining operators
[Repealed]
CU 13
Application of sections to non-resident mining operators
[Repealed]
CU 14
Recovery of reinvestment profit on disposal of mining shares
[Repealed]
CU 15
Recovery of reinvestment profit not used for mining purposes
[Repealed]
CU 16
Recovery of reinvestment profit on repayment of loans
[Repealed]
CU 17
Repayment by mining company of amount written off
[Repealed]
CU 18
Amount treated as repayment for purposes of section CU 17: excess
[Repealed]
CU 19
Amount treated as repayment for purposes of section CU 17: net income
[Repealed]
CU 20
Mining company or mining holding company liquidated
[Repealed]
Definitions
CU 21
Meaning of income from mining
[Repealed]
CU 22
Meaning of mining company
[Repealed]
CU 23
Meaning of mining development expenditure
[Repealed]
CU 24
Meaning of mining exploration expenditure
[Repealed]
CU 25
Meaning of mining operations
[Repealed]
CU 26
Meaning of mining venture
[Repealed]
CU 27
Meaning of resident mining operator
[Repealed]
CU 28
Meaning of specified mineral
[Repealed]
CU 29
Other definitions
[Repealed]
Subpart CV—Income specific to certain entities
CV 1
Group companies
CV 2
Consolidated groups: income of company in group
CV 3
Consolidated groups: arrangement for disposal of shares
CV 4
Amalgamated companies: amount derived after amalgamation
CV 5
Statutory producer boards
CV 6
Crown Research Institutes
CV 7
Australian wine producer rebate
CV 8
Regulations: Australian wine producer rebate
CV 9
Supplementary dividend holding companies
[Repealed]
CV 10
Foreign dividend payment account companies or conduit tax relief companies
[Repealed]
CV 11
Maori authorities
CV 12
Trustees: amounts received after person’s death
CV 13
Amounts derived from trusts
CV 14
Distributions from community trusts
CV 15
Amounts derived from trusts while person absent from New Zealand
CV 16
Non-resident shippers
CV 17
Non-exempt charities: taxation of tax-exempt accumulation
CV 18
Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests
CV 19
Additional income for certain imputation credits
CV 20
Employee share schemes
Subpart CW—Exempt income
Income from business or trade-like activities
CW 1
Forestry companies established by the Crown, Maori owners, and holding companies acquiring land with standing timber from founders
CW 1B
Treaty of Waitangi claim settlements: rights to take timber
CW 2
Forestry encouragement agreements
CW 3
Forestry companies and Maori investment companies
CW 3B
Pre-1990 forest land units: emissions trading scheme
[Repealed]
CW 3C
Certain subdivisions of land
Income from holding property (excluding equity)
CW 4
Annuities under life insurance policies
CW 5
Payments of interest: post-war credits
CW 6
Payments of interest: farm mortgages
CW 7
Foreign-sourced interest
CW 8
Money lent to government of New Zealand
CW 8B
Certain amounts derived from use of assets
Income from equity
CW 9
Dividend derived from foreign company
CW 10
Dividend within New Zealand wholly-owned group
CW 10B
Dividends derived by council-controlled organisation holding companies
CW 11
Dividend of conduit tax relief holding company
[Repealed]
CW 12
Proceeds of share disposal by qualifying foreign equity investor
CW 13
Proceeds from share or option acquired under venture investment agreement
CW 14
Dividends derived by qualifying companies
CW 15
Dividends paid by qualifying companies
Employee or contractor income
CW 16
Allowance of Governor-General and other benefits and privileges
CW 16B
Accommodation expenditure: out-of-town secondments and projects
CW 16C
Time periods for certain accommodation expenditure
CW 16D
Accommodation expenditure: conferences and overnight stays
CW 16E
Accommodation expenditure: new employees
CW 16F
Accommodation expenditure: multiple workplaces
CW 17
Expenditure on account, and reimbursement, of employees
CW 17B
Relocation payments
CW 17C
Payments for overtime meals and certain other allowances
CW 17CB
Payments for certain work-related meals
CW 17CC
Payments for distinctive work clothing
CW 18
Allowance for additional transport costs
CW 19
Amounts derived during short-term visits
CW 20
Amounts derived by visiting entertainers including sportspersons
CW 21
Amounts derived by visiting crew of pleasure craft
CW 22
Amounts derived by overseas experts and trainees in New Zealand by government arrangement
CW 23
Income for military or police service in operational area
CW 24
Deferred military pay for active service
CW 25
Value of board for religious society members
CW 26
Jurors’ and witnesses’ fees
CW 26B
Exempt ESS
CW 26C
Meaning of exempt ESS
CW 26D
Meaning of employee
CW 26DB
Meaning of market value
CW 26E
Meaning of normal retiring age
CW 26F
Meaning of share
CW 26G
Meaning of trustee
Certain income of transitional resident
CW 27
Certain income derived by transitional resident
Income from living allowances, foreign superannuation, compensation, and government grants
CW 28
Pensions
CW 28B
Foreign superannuation withdrawal in initial period of residency
CW 28C
Foreign superannuation withdrawal exceeding given amount
CW 29
Reinvested amounts from foreign superannuation schemes in Australia
CW 29B
Amounts from Australian complying superannuation schemes reinvested in KiwiSaver schemes
CW 30
Annuities from Crown Bank Accounts
CW 31
Services for members and former members of Parliament
CW 32
Maintenance payments
CW 33
Allowances and benefits
CW 34
Compensation payments
CW 35
Personal service rehabilitation payments
CW 36
Scholarships and bursaries
CW 37
Film production grants
[Repealed]
Income of certain entities
CW 38
Public authorities
CW 38B
Public purpose Crown-controlled companies
CW 39
Local authorities
CW 40
Local and regional promotion bodies
CW 40B
Te Urewera Board
CW 40C
Te Pou Tupua
CW 41
Charities: non-business income
CW 42
Charities: business income
CW 42B
Community housing trusts and companies
CW 43
Charitable bequests
CW 44
Friendly societies
CW 45
Funeral trusts
CW 46
Bodies promoting amateur games and sports
CW 47
TAB NZ and racing clubs
CW 48
Income from conducting gaming-machine gambling
CW 49
Bodies promoting scientific or industrial research
CW 50
Veterinary services bodies
CW 51
Herd improvement bodies
CW 52
Community trusts
CW 52B
Disability support services
CW 53
Distributions from complying trusts
CW 54
Foreign-sourced amounts derived by trustees
CW 55
Maori authority distributions
CW 55BA
Tertiary education institutions and subsidiaries
CW 55BAB
Rebate of fees paid by FIF
CW 55BB
Minors’ income, to limited extent
Partners and partnerships
CW 55B
Amounts of exempt income for partners
Income from certain activities
CW 56
Non-resident aircraft operators
CW 57
Non-resident company involved in exploration and development activities
CW 58
Disposal of companies’ own shares
CW 59
New Zealand companies operating in Niue
CW 59B
Income of and distributions by certain international funds
CW 59C
Life reinsurance claims from reinsurer outside New Zealand
CW 60
Stake money
CW 61
Providing standard-cost household service
CW 62
Interest paid under the KiwiSaver Act 2006
CW 62B
Voluntary activities
CW 62C
Income from foreign-currency loans used for disallowed residential property
CW 63
Avoidance arrangements
CW 64
Exemption under other Acts
Restructuring under New Zealand Railways Corporation Restructuring Act 1990
CW 65
New Zealand Railways Corporation restructure: exempt income
Subpart CX—Excluded income
Goods and services tax
CX 1
Goods and services tax
Fringe benefits
Introductory provisions
CX 2
Meaning of fringe benefit
CX 3
Excluded income
CX 4
Relationship with assessable income
CX 5
Relationship with exempt income
Fringe benefits
CX 6
Private use of motor vehicle
CX 7
Employer or associated person treated as having right to use vehicle under arrangement
CX 8
Private use of motor vehicle: use by more than 1 employee
CX 9
Subsidised transport
CX 10
Employment-related loans
CX 11
Employment-related loans: loans by life insurers
CX 12
Services for members and former members of Parliament
CX 13
Contributions to superannuation schemes
CX 14
Contributions to sickness, accident, or death benefit funds
CX 15
Contributions to funeral trusts
CX 16
Contributions to life or health insurance
CX 17
Benefits provided to employees who are shareholders or investors
CX 18
Benefits provided to associates of both employees and shareholders
Exclusions and limitations
CX 19
Benefits provided instead of allowances
CX 19B
Transport in vehicle other than motor vehicle
CX 19C
Certain public transport
CX 19D
Certain self-powered and low-powered vehicles and vehicle-share services
CX 20
Benefits to enable performance of duties
CX 21
Business tools
CX 22
Benefits to non-executive directors
CX 23
Benefits provided on premises
CX 24
Benefits related to health or safety
CX 25
Benefits provided by charitable organisations
CX 26
Non-liable payments
CX 27
Assistance with tax returns
CX 28
Accommodation
CX 29
Entertainment
CX 30
Distinctive work clothing
CX 31
Contributions to income protection insurance
CX 32
Services provided to superannuation fund
CX 33
Goods provided at discount by third parties
CX 33B
Benefits for members of Parliament
Definitions
CX 34
Meaning of emergency call
CX 35
Meaning of employee share loan
CX 36
Meaning of private use
CX 37
Meaning of unclassified benefit
CX 38
Meaning of work-related vehicle
Insurance
CX 39
Life insurers and fully reinsured persons
[Repealed]
CX 40
Superannuation fund deriving amount from life insurance policy
CX 41
Resident insurance underwriters
Petroleum mining
CX 42
Disposal of ownership interests in controlled petroleum mining entities
CX 43
Farm-out arrangements for mining operations
Mineral mining
CX 44
Disposal of mining shares
[Repealed]
CX 45
Disposal of mining shares acquired with reinvestment profit
[Repealed]
CX 46
Repayment of loans made from reinvestment profit
[Repealed]
Government grants
CX 47
Government grants to businesses
CX 48
Amounts remitted as condition of new start grant
[Repealed]
CX 48B
Issue of post-1989 forest land units
[Repealed]
Government funding of film and television
CX 48C
Government funding additional to government screen production payments
Research and development
CX 48D
Tax credits for expenditure on research and development
[Repealed]
Superannuation and savings
CX 49
Employer’s superannuation contributions
CX 50
Tax credits for KiwiSaver and complying superannuation funds
CX 50B
Contributions to retirement savings schemes
Farming, forestry, or fishing
CX 51
Income equalisation schemes
Emissions units under Climate Change Response Act 2002
CX 51B
Disposal of pre-1990 forest land emissions units
CX 51C
Disposal of fishing quota emissions units
Environmental restoration
CX 52
Refund from environmental restoration account
Inflation-indexed instruments
CX 53
Credits for inflation-indexed instruments
Share-lending arrangements and excepted financial arrangements
CX 54
Share-lending collateral under share-lending arrangements
CX 54B
Transfers of emissions units under certain excepted financial arrangements
Portfolio investment income
CX 55
Proceeds from disposal of investment shares
CX 55B
Proceeds from disposal of certain shares and financial arrangements
CX 56
Attributed income of certain investors in multi-rate PIEs
CX 56B
Distributions to investors in multi-rate PIEs
CX 56C
Distributions to investors by listed PIEs
CX 57
Credits for investment fees
Foreign investment income
CX 57B
Amounts derived during periods covered by calculation methods
Minors’ beneficiary income
CX 58
Amounts derived by minors from trusts
CX 59
Taxable distributions from non-complying trusts
Transactions between companies in consolidated groups
CX 60
Intra-group transactions
Avoidance arrangements
CX 61
Avoidance arrangements
Partners and partnerships
CX 62
Amounts of excluded income for partners
Look-through companies
CX 63
Dividends derived after company ceased to be look-through company
Financial instruments and hybrid mismatches
CX 64
Income from financial instrument
Subpart CZ—Terminating provisions
CZ 1
Grandparented shares under employee share schemes
CZ 2
Mining company’s 1970–71 tax year
[Repealed]
CZ 3
Exchange variations on 8 August 1975
CZ 4
Mineral mining: company making loan before 1 April 1979
[Repealed]
CZ 5
Exempt interest: overseas money lent to government or local or public authority before 29 July 1983
CZ 6
Commercial bills before 31 July 1986
CZ 7
Primary producer co-operative companies: 1987–88 income year
CZ 8
Farm-out arrangements for petroleum mining before 16 December 1991
CZ 9
Available capital distribution amount: 1965 and 1985–1992
CZ 9B
Available capital distribution amount: 1988 to 2010
[Repealed]
CZ 10
Transitional relief for calculation of attributed repatriation dividends: 2 July 1992
[Repealed]
CZ 11
Recovery of deductions for software acquired before 1 April 1993
CZ 12
General insurance with risk period straddling 1 July 1993
CZ 13
Treatment of units and interests in unit trusts and group investment funds on issue as at 1 April 1996
CZ 14
Treatment of superannuation fund interests in group investment funds on 1 April 1999
CZ 15
Accident insurance contracts before 1 July 2000
CZ 16
Interest payable to exiting company: 2001
CZ 17
Dividend of exiting company: 2001
CZ 18
Benefit provider approved within 6 months of 25 November 2003
CZ 19
Community trust receipts in 2004–05 or 2005–06 tax year
CZ 20
Disposal of personal property lease asset under specified lease
CZ 21
Superannuation fund loans made to members before 1 April 1989
CZ 21B
Optional treatment of withdrawals from foreign superannuation schemes not included in return or assessed before 1 April 2014
CZ 22
Geothermal wells between 31 March 2003 and 17 May 2006
CZ 23
Insurance or compensation for buildings replaced as revenue account property affected by Canterbury earthquakes
[Repealed]
CZ 23
Employee benefits for Canterbury earthquake relief: exempt income
CZ 23B
Employee benefits for North Island flooding events: exempt income
CZ 24
Employee benefits for Canterbury earthquake relief: not fringe benefits
CZ 24B
Employee benefits for North Island flooding events relief: not fringe benefits
CZ 25
Land and buildings as revenue account property affected by Canterbury earthquakes and replaced—insurance or compensation, Government purchase
CZ 25B
Land and buildings as revenue account property affected by Hurunui/Kaikōura earthquakes and replaced—insurance or compensation
CZ 26
Land and buildings affected by Canterbury earthquakes—sections CB 9 to CB 11 and CB 14 overridden for Crown purchases
CZ 27
Prior bad debt deductions clawback
CZ 28
Transitional provision for mineral mining: previously appropriated mining expenditure
CZ 29
Accommodation expenditure: Canterbury earthquake relief
CZ 29B
Accommodation expenditure: North Island flooding events
CZ 30
Transitional provision: application of certain accommodation provisions
CZ 31
Accommodation expenditure: New Zealand Defence Force
CZ 32
Treatment of certain petroleum storage facilities
CZ 33
Transitional exception for accommodation provided to ministers of religion
CZ 34
Income arising from tax accounting provision for aircraft engine overhauls
CZ 35
Treatment of backdated payments for social rehabilitation: 2008–09 to 2017–18 income years
[Repealed]
CZ 35
Amounts derived by Te Kōwhatu Tū Moana
CZ 36
Treatment of backdated payments for social rehabilitation: 2008–09 to 2017–18 income years
CZ 37
Income equalisation schemes
CZ 38
Disposals of trading stock to non-associates without business purpose
CZ 39
Disposal within 5 years: bright-line test for residential land: acquisition on or after 29 March 2018
CZ 40
Main home exclusion for bright-line: acquisition on or after 29 March 2018
Part D Deductions
Subpart DA—General rules
DA 1
General permission
DA 2
General limitations
DA 3
Effect of specific rules on general rules
DA 4
Treatment of amount of depreciation loss
DA 5
Treatment of expenditure for commercial fit-out
[Repealed]
Subpart DB—Specific rules for expenditure types
Taxes and other amounts
DB 1
Taxes, other than GST, and penalties
DB 2
Goods and services tax
DB 3
Determining tax liabilities
DB 3B
Use of money interest
DB 4
Chatham Islands dues
DB 4B
Fees to purchase funds in tax pooling accounts
Financing costs
DB 5
Transaction costs: borrowing money for use as capital
DB 6
Interest: not capital expenditure
DB 7
Interest: most companies need no nexus with income
DB 8
Interest: money borrowed to acquire shares in group companies
DB 9
Interest incurred on money borrowed to acquire shares in qualifying companies
DB 10
Interest or expenditure connected to profit-related debentures
DB 10B
Interest or expenditure connected to stapled debt security
Financial arrangements adjustments
DB 11
Negative base price adjustment
DB 12
Base price adjustment under old financial arrangements rules
DB 13
Repayment of debt in certain circumstances
DB 14
Security payment
DB 15
Sureties
Share-lending arrangements and excepted financial arrangements
DB 16
Share-lending collateral under share-lending arrangements
DB 17
Replacement payments and imputation credits under share-lending arrangements
DB 17B
Transfers of emissions units under certain excepted financial arrangements
Premises or land costs
DB 18AA
Square metre rate method
DB 18A
Ring-fenced allocations: disposal of residential land within 5 years
[Repealed]
DB 18AB
Deduction cap: disposal of residential land within 5 years to associated persons
[Repealed]
DB 18
Transaction costs: leases
DB 19
Expenses in application for resource consent
DB 20
Destruction of temporary building
DB 20B
Consideration for agreement to grant, renew, extend, or transfer leasehold estate or licence
DB 20C
Consideration for agreement to surrender leasehold estate or terminate licence
DB 21
Amounts paid for non-compliance with covenant for repair
DB 22
Amounts paid for non-compliance and change in use
DB 22B
Amounts paid for commercial fit-out for building
Revenue account property
DB 23
Cost of revenue account property
DB 23B
Revenue account property: certain intra-group transactions
DB 23C
Revenue account property: cost of some residential land reduced
DB 24
Share losses
DB 25
Cancellation of shares held as revenue account property
DB 26
Amount from profit-making undertaking or scheme and not already in income
DB 27
Amount from major development or division and not already in income
DB 28
Amount from land affected by change and not already in income
DB 29
Apportionment when land acquired with other property
DB 30
Cost of certain minerals
Bad debts
DB 31
Bad debts
DB 32
Bad debts owed to estates
Research and development
DB 33
Scientific research
DB 34
Research or development
DB 35
Some definitions
DB 36
Patent expenses
DB 37
Expenses in application for patent or design registration
DB 38
Patent rights: devising patented inventions
DB 39
Patent rights acquired before 1 April 1993
DB 40
Patent applications or patent rights acquired on or after 1 April 1993
DB 40BA
Expenses in application for plant variety rights
Unsuccessful software development
DB 40B
Expenditure in unsuccessful development of software
Corporate gifting
DB 41
Charitable or other public benefit gifts by company
Theft and bribery
DB 42
Property misappropriated by employees or service providers
DB 43
Making good loss from misappropriation by partners
DB 44
Restitution of stolen property
DB 45
Bribes
Pollution control
DB 46
Avoiding, remedying, or mitigating effects of discharge of contaminant or making of noise
Repayments
DB 47
Payments for remitted amounts
DB 48
Restrictive covenant breached
Matching rules: revenue account property, prepayments, and deferred payments
DB 49
Adjustment for opening values of trading stock, livestock, and excepted financial arrangements
DB 50
Adjustment for prepayments
DB 51
Adjustment for deferred payment of employment income
Adjustments for leases that become finance leases
DB 51B
Adjustments for leases that become finance leases
IFRS leases
DB 51C
NZ IFRS 16 leases
Change to accounting practice
DB 52
Adjustment for change to accounting practice
Investment income
DB 53
Attributed PIE losses of certain investors
DB 54
No deductions for fees relating to interests in multi-rate PIEs
DB 54B
Expenditure incurred by foreign investment PIEs
DB 54C
Certain expenditure incurred by foreign PIE equivalents
Exempt income
DB 55
Expenditure incurred in deriving exempt dividend
[Repealed]
Use of motor vehicle under certain arrangements
DB 56
Expenditure incurred in operating motor vehicle under agreement or arrangement affected by section CX 7
Payments to spouses, civil union partners, or de facto partners
DB 57
Payments to spouses, civil union partners, or de facto partners other than for services
Hybrid and branch mismatches of deductions and income from multi-jurisdictional arrangements
DB 57B
Matching of deductions and income from multi-jurisdictional arrangements
Avoidance and non-market transactions
DB 58
Adjustment for avoidance arrangements
DB 59
Market value substituted
Emissions units and liabilities under Climate Change Response Act 2002
DB 60
Acquisition of emissions units
DB 60B
Liabilities for emissions
DB 61
Surrender of certain emissions units for post-1989 forest land emissions
Legal expenses
DB 62
Deduction for legal expenses
Miscellaneous company administration costs
DB 63
Expenses in paying dividends
DB 63B
Periodic company registration fees
DB 63C
Meetings of shareholders
Capital contributions
DB 64
Capital contributions
DB 65
Allowance for certain commercial buildings
[Repealed]
Feasibility expenditure
DB 66
Feasibility expenditure: spread deduction
DB 67
Feasibility expenditure: immediate deduction
Utilities distribution assets
DB 68
Amounts paid for utilities distribution assets
Subpart DC—Employee or contractor expenditure
DC 1
Lump sum payments on retirement
DC 2
Pension payments to former employees
DC 3
Pension payments to former partners
DC 3B
Payments to working owners
DC 4
Payments to working partners
DC 5
Payments to spouses, civil union partners, or de facto partners: services
DC 6
Contributions to employees’ benefit funds
DC 7
Contributions to employees’ superannuation schemes
DC 8
Attribution of personal services
DC 9
Restrictive covenants or exit inducements
DC 10
Disposal of business: transferred employment income obligations
DC 11
Transfers of employment income obligations to associates
DC 12
Loans to employees under share purchase schemes
[Repealed]
DC 13
Criteria for approval of share purchase schemes: before period of restriction ends
[Repealed]
DC 14
Criteria for approval of share purchase schemes: when period of restriction ends
[Repealed]
DC 15
Some definitions
[Repealed]
Subpart DD—Entertainment expenditure
DD 1
Entertainment expenditure generally
DD 2
Limitation rule
DD 3
When limitation rule does not apply
DD 4
Employment-related activities
DD 5
Promoting businesses, goods, or services
DD 6
Entertainment as business or for charitable purpose
DD 7
Entertainment outside New Zealand
DD 8
Entertainment that is income or fringe benefit
DD 9
Relationship with fringe benefit tax rules
DD 10
Interpretation: reimbursement and apportionment
DD 11
Some definitions
Subpart DE—Motor vehicle expenditure
Introductory provisions
DE 1
What this subpart does
DE 2
Deductions for business use
DE 2B
Election to use kilometre rate method or costs method
DE 3
Methods for calculating proportion of business use
DE 4
Default method for calculating proportion of business use
Actual records
DE 5
Actual records
Logbook
DE 6
Using logbook for test period
DE 7
Logbook requirements
DE 8
Logbook term
DE 9
Inadequate logbook
DE 10
Variance during logbook term
DE 11
Replacement vehicles
Kilometre rates
DE 12
Kilometre rate method
Subpart DF—Government grants, funding, and compensation
DF 1
Government grants to businesses
DF 2
Repayment of grant-related suspensory loans
DF 3
Identifying expenditure for purposes of sections DF 1 and DF 2
DF 4
Payments for social rehabilitation
DF 5
Government funding additional to government screen production payments
Subpart DG—Expenditure related to use of certain assets
Introductory provisions
DG 1
What this subpart does
DG 2
Application of this subpart
DG 3
Meaning of asset for this subpart
DG 4
Meaning of private use for this subpart
DG 5
Meaning and treatment of interest expenditure for this subpart
DG 6
Associated persons: company rule modified
When assets held simply
DG 7
Expenditure related to income-earning use
DG 8
Expenditure limitation rule
DG 9
Apportionment formula
When assets held in corporate structures
DG 10
Interest expenditure rules
DG 11
Interest expenditure: close companies
DG 12
Interest expenditure: group companies
DG 13
Interest expenditure: corporate shareholders
DG 14
Interest expenditure: non-corporate shareholders
Quarantined expenditure
DG 15
Quarantined expenditure rules
DG 16
Quarantined expenditure when asset activity negative
DG 17
Allocation of amounts quarantined under section DG 16
DG 18
Quarantined expenditure: group companies and shareholders
DG 19
Allocation of amounts quarantined under section DG 18
Certain modifications to rules
DG 20
When income cannot be separately attributed
DG 21
Opting out of treatment under this subpart
DG 22
Application of rules to part years
Subpart DH—Interest incurred in relation to certain land
DH 1
Interest related to certain land
DH 2
When this subpart applies
DH 3
When this subpart applies: companies
DH 4
When this subpart does not apply: exemptions for new builds, development, social or emergency or transitional housing, and council housing
DH 5
Key terms
DH 6
Interposed residential property percentage
DH 7
Grandparented residential interest
DH 8
Deduction not allowed
DH 9
Exception to limited denial of deductions: loans denominated in foreign currencies
[Repealed]
DH 10
Limited denial of deductibility: simplified calculation of interest affected
DH 11
Denied amounts: treatment upon disposal of disallowed residential property
DH 12
Valuation
Subpart DN—Attributed losses from foreign equity
Attributed controlled foreign company (CFC) loss
DN 1
Attributed controlled foreign company loss
DN 2
When attributed CFC loss arises
DN 3
Calculation of attributed CFC loss
DN 4
Ring-fencing cap on deduction
Foreign investment fund (FIF) loss
DN 5
Foreign investment fund loss
DN 6
When FIF loss arises
DN 7
Calculation of FIF loss
DN 8
Ring-fencing cap on deduction: attributable FIF income method
DN 9
Treatment of certain costs incurred in acquiring FIF interests
Subpart DO—Farming and aquacultural business expenditure
Farming
DO 1
Enhancements to land
DO 2
Plantings for erosion, shelter, and water protection purposes
DO 3
Trees on farms
DO 4
Improvements to farm land
DO 5
Expenditure on land: planting of listed horticultural plants
DO 6
Expenditure on land: horticultural replacement planting
DO 7
Accounting for expenditure on listed horticultural plants under sections DO 5 and DO 6
DO 8
Meaning of planting and plot
DO 9
Meaning of replaced area fraction
DO 10
Farming or horticulture expenditure of lessor or sublessor
DO 11
Improvement destroyed or made useless
DO 11B
Entering partners’ livestock deduction
[Repealed]
Aquaculture
DO 12
Improvements to aquacultural business
DO 13
Improvement destroyed or made useless
Subpart DP—Forestry expenditure
DP 1
Expenditure of forestry business
DP 2
Plant or machinery
DP 3
Improvements to forestry land
DP 4
Improvement destroyed or made useless
DP 5
Forestry encouragement agreement: deductions
DP 6
Forestry encouragement agreement: no deduction
DP 7
Land contouring: no deduction
DP 8
Forestry business on land acquired from the Crown, Maori owners, or holding company: no deduction
DP 9
Cost of acquiring timber: forestry business on land acquired from the Crown, Maori owners, or holding company
DP 9B
Treaty of Waitangi claim settlements: rights to take timber
DP 10
Cost of acquiring timber or right to take timber: other cases
DP 11
Cost of timber
Subpart DQ—Income equalisation schemes and environmental restoration accounts schemes
DQ 1
Main income equalisation scheme
DQ 2
Adverse event income equalisation scheme
[Repealed]
DQ 3
Thinning operations income equalisation scheme
DQ 4
Environmental restoration accounts scheme
Subpart DR—Life insurance business expenditure
DR 1
Policyholder base allowable deduction of life insurer
DR 2
Shareholder base allowable deduction of life insurer
DR 3
Life reinsurance premiums to reinsurer outside New Zealand
DR 4
Life insurers’ claims
Subpart DS—Film industry expenditure
DS 1
Acquiring film rights
DS 2
Film production expenditure
DS 2B
Expenditure when film or film right intended for disposal
DS 3
Clawback of deductions for film reimbursement schemes
DS 4
Meaning of film reimbursement scheme
Subpart DT—Petroleum mining expenditure
Petroleum exploration expenditure
DT 1A
Ring-fenced allocations
DT 1
Petroleum exploration expenditure
DT 2
Arrangement for petroleum exploration expenditure and disposal of property
DT 3
Acquisition of privileges and permits
DT 4
Acquisition of exploratory material
Petroleum development expenditure
DT 5
Petroleum development expenditure
DT 6
Expenditure on petroleum mining assets
DT 7
Exploratory well expenditure
DT 7B
Resuming commercial production: petroleum development expenditure
DT 8
Acquisition of certain petroleum mining assets
DT 9
Disposal of petroleum mining asset to associate
DT 10
Disposal of petroleum mining asset outside association
DT 11
Association ending
Other expenditure
DT 12
Damage to assets
DT 13
Disposal of ownership interests in controlled petroleum mining entities
DT 14
Farm-out arrangements
DT 15
Persons associated with petroleum miner
DT 16
Decommissioning
General provisions
DT 17
Attribution of expenditure
DT 18
Replacement permits
DT 19
Partnership interests and disposal of part of asset
DT 20
Petroleum mining operations outside New Zealand
Subpart DU—Mineral mining expenditure
DU 1
Mining expenditure: prospecting and exploration expenditure
DU 2
Mining expenditure: rehabilitation expenditure
DU 3
Acquisition of land for mining operations
DU 4
Acquisition of mineral mining assets
DU 5
Farm-out arrangements
DU 6
Deduction for certain mining expenditure spread over assumed life of mine
DU 7
Deduction for certain mining expenditure spread on basis of units of production
Classes of mining expenditure
DU 8
Classes of mineral mining expenditure
DU 9
Some definitions
DU 10
Meaning of mining exploration expenditure
DU 11
Meaning of mining development expenditure: exclusion of operational expenditure
DU 12
Meaning of mining rehabilitation expenditure
Subpart DV—Expenditure specific to certain entities
Superannuation funds
DV 1
Publicising superannuation funds
DV 2
Transfer of expenditure to master fund
DV 3
Formula for calculating maximum deduction
DV 4
Carry forward of expenditure
DV 4B
Carry forward of expenditure by member funds investing in portfolio investment entities
Other entities
DV 5
Investment funds: transfer of expenditure to master funds
DV 6
Formula for calculating maximum deduction
DV 7
Carry forward of expenditure
DV 8
Non-profit organisations
DV 9
Trusts
DV 10
Building societies
DV 11
Distribution to member of co-operative company, excluded from being dividend
DV 12
Maori authorities: donations
DV 13
Group companies
DV 14
Amalgamated company: expenditure on improvements for farming, horticultural, aquacultural, and forestry businesses
DV 15
Amalgamated companies: property passing on resident’s restricted amalgamation
DV 16
Consolidated groups: intra-group transactions
DV 17
Consolidated groups: expenditure or loss incurred by group companies
DV 18
Statutory producer boards and co-operative companies
DV 18B
Cost base for shares when debt remitted within economic group
DV 19
Association rebates
Partners and partnerships
DV 20
Partners
DV 21
Losses for QCs entering partnership regime
Look-through companies
DV 22
Owners of look-through companies
DV 23
Losses for QCs entering look-through companies rules
Sole traders
DV 24
Losses for QCs becoming sole traderships
DV 25
Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests
Reinstatement of R&D tax losses
DV 26
Deduction for reinstatement of R&D tax losses
Employee share schemes
DV 27
Employee share schemes
DV 28
Exempt employee share schemes
Subpart DW—Expenditure specific to certain industries
DW 1
Airport operators
DW 2
Bloodstock racing
DW 3
Non-resident general insurers and shippers
DW 3B
Lloyd’s of London: deductions for life insurance business
DW 4
Deduction for general insurance outstanding claims reserve
DW 5
Aircraft operators: aircraft engines and aircraft engine overhauls
DW 6
Aircraft operators: payments and adjustments under finance leases
Subpart DX—Other expenditure
DX 1
Testamentary annuities
DX 2
Tax credits: conduit financing arrangements
[Repealed]
DX 3
Tax credits: supplementary dividend holding companies
[Repealed]
Subpart DZ—Terminating provisions
DZ 1
Commercial bills before 31 July 1986
DZ 2
Life insurers acquiring property before 1 April 1988
DZ 3
Petroleum mining: development expenditure from 1 October 1990 to 15 December 1991
DZ 4
Expenditure on abandoned exploratory well before 16 December 1991
DZ 5
Farm-out arrangements for petroleum mining before 16 December 1991
DZ 6
Partnership interests and disposal of part of asset before 16 December 1991
DZ 7
Petroleum mining operations outside New Zealand before 16 December 1991
DZ 8
Acquiring patent rights before 1 April 1993
DZ 9
Premium paid on land leased before 1 April 1993
DZ 10
General insurance with risk period straddling 1 July 1993
DZ 11
Film reimbursement scheme on or before 30 June 2001
DZ 12
Mineral mining: 1954–2005
[Repealed]
DZ 13
Enhancements to land unamortised at end of 2004–05 year
DZ 14
Deductions under specified leases
DZ 15
Patent applications before 1 April 2005
DZ 16
Geothermal wells between 31 March 2003 and 17 May 2006
DZ 17
Expenditure on improvements to aquacultural business before 1995–96 income year
DZ 18
Expenditure on improvements to forestry land before 1995–96 income year
DZ 19
Attributed CFC loss carried back under section EZ 32C
[Repealed]
DZ 20
Expenditure incurred while income-earning activity interrupted by Canterbury earthquake
DZ 21
Transfer in 2013–14 income year of assets to which subpart DG applies
DZ 22
Aircraft maintenance: aircraft engines acquired before 2017–18 income year
DZ 23
Aircraft maintenance: tax accounting provisions for expenditure incurred after 2016–17 income year
Part E Timing and quantifying rules
Subpart EA—Matching rules: revenue account property, prepayments, and deferred payments
EA 1
Trading stock, livestock, and excepted financial arrangements
EA 2
Other revenue account property
EA 3
Prepayments
EA 4
Deferred payment of employment income
Subpart EB—Valuation of trading stock (including dealer’s livestock)
Introductory provisions
EB 1
When this subpart applies
EB 2
Meaning of trading stock
EB 3
Valuation of trading stock
EB 4
Trading stock valuation methods
EB 5
Transfers of trading stock within wholly-owned groups
Standard valuation
EB 6
Cost
EB 7
Cost allocation: cost-flow method
EB 8
Cost allocation: budgeted method or standard cost method
EB 9
Discounted selling price
EB 10
Replacement price
EB 11
Market selling value
EB 12
Valuing closing stock consistently
Low-turnover valuation
EB 13
Low-turnover valuation
EB 14
Low-turnover valuation methods
EB 15
Cost for low-turnover traders
EB 16
Cost allocation: cost-flow method for low-turnover traders
EB 17
Costs: manufactured or produced stock of low-turnover traders
EB 18
Costs: other stock of low-turnover traders
EB 19
Discounted selling price for low-turnover traders
EB 20
Replacement price for low-turnover traders
EB 21
Market selling value for low-turnover traders
EB 22
Valuing closing stock consistently for low-turnover traders
Low value trading stock
EB 23
Valuing closing stock under $10,000
Disposal of business assets
EB 24
Apportionment on disposal of business assets that include trading stock
Subpart EC—Valuation of livestock
Introductory provisions
EC 1
Application of this subpart
EC 2
Valuation of livestock
EC 3
Livestock valuation methods
EC 4
Transfers of livestock within wholly-owned groups
EC 4B
Compulsory use of herd scheme method for associated persons
EC 4C
Value and timing of transfers
EC 5
Transfer of livestock because of self-assessed adverse event
Valuation of specified livestock
EC 6
Application of sections EC 7 to EC 27
EC 7
Valuation methods
EC 8
Restrictions arising from use of herd scheme
EC 9
Restrictions on use of national standard cost scheme
EC 10
Restrictions on use of cost price method
EC 11
Restrictions on making of elections
EC 12
Interests in livestock
EC 13
Changes in partnership interests
Herd scheme
EC 14
Herd scheme
EC 15
Determining national average market values
EC 16
Valuation under herd scheme
EC 17
Herd value ratio
EC 18
Inaccurate herd value ratio
EC 19
Chatham Islands adjustment to herd value
EC 20
Herd livestock disposed of before values determined
EC 21
Herd livestock on death before values determined
[Repealed]
National standard cost scheme
EC 22
National standard cost scheme
EC 23
Determining national standard costs
EC 24
Methods for determining costs using national standard cost scheme
Other methods
EC 25
Cost price, replacement price, or market value
EC 26
Bailee’s treatment of livestock
Partnerships: cost price and national standard cost scheme
EC 26B
Entering partners’ cost base
Definitions
EC 27
Some definitions
Valuation of non-specified livestock
EC 28
Application of sections EC 29 to EC 31
EC 29
Determining standard values
EC 30
Closing value methods
EC 31
Enhanced production
Valuation of high-priced livestock
EC 32
Application of sections EC 33 to EC 37
EC 33
Determining depreciation percentages
EC 34
General rule
EC 35
Livestock reaching national average market value and livestock no longer used for breeding
EC 36
Immature livestock and recently acquired livestock
EC 37
Bailment
Valuation of bloodstock
EC 38
Application of sections EC 39 to EC 48
EC 39
First income year in breeding business
EC 39B
Stud-founding bloodstock and related terms
EC 39C
Setting and publication of national minimum price threshold
EC 40
Later income years in breeding business
EC 41
Reduction: bloodstock not previously used for breeding in New Zealand other than as shuttle stallions
EC 42
Reduction: bloodstock previously used for breeding in New Zealand
EC 43
Accident, birth deformity, or infertility
EC 44
Other bloodstock
EC 45
Residual value of bloodstock
EC 46
Use of bloodstock for racing
EC 47
Change of use of bloodstock in course of business
EC 47B
Removal of high-priced bloodstock from New Zealand after earlier deductions
EC 47C
When prospective breeders treated as being in breeding business
EC 47D
Change of prospective bloodstock breeders’ expectation or intention after earlier deductions
EC 47E
Prospective breeders commencing actual breeding businesses
EC 48
Replacement breeding stock
Subpart ED—Valuation of excepted financial arrangements
ED 1
Valuation of excepted financial arrangements
ED 1B
Valuation of emissions units issued for zero price
ED 2
Transfers of certain excepted financial arrangements within wholly-owned groups
ED 2B
Transfers to shareholders by ASX-listed Australian company of shares in subsidiary
ED 3
Part-year tax calculations for transfers: general insurance OCR
ED 4
Valuation of certain excepted financial arrangements denominated in foreign currency
Subpart EE—Depreciation
Introductory provision
EE 1
What this subpart does
Meaning of own
EE 2
Nature of ownership of item
EE 3
Ownership of goods subject to reservation of title
EE 4
Ownership of lessee’s improvements: lessee
EE 5
Ownership of lessee’s improvements: other person
Meaning of depreciable property
EE 6
What is depreciable property?
EE 7
What is not depreciable property?
EE 8
Election that property not be depreciable
How amounts of depreciation loss and depreciation recovery income are calculated
EE 9
Description of elements of calculation
EE 10
Calculation rule: item temporarily not available
EE 11
Calculation rule: income year in which item disposed of
Methods
EE 12
Depreciation methods
Amount of depreciation loss under diminishing value method or straight-line method
EE 13
Application of sections EE 14 to EE 19
EE 14
Diminishing value or straight-line method: calculating amount of depreciation loss
EE 15
Amount of adjusted tax value
EE 16
Amount resulting from standard calculation
EE 17
Amount resulting from petroleum-related depreciable property calculation
EE 18
Cost: change from diminishing value to straight-line method
EE 18B
Cost: some depreciable intangible property
EE 19
Cost: fixed life intangible property
Amount of depreciation loss under pool method
EE 20
Application of sections EE 21 to EE 24
EE 21
Pool method: calculating amount of depreciation loss
EE 22
Cases affecting pool
EE 23
Combined pools
EE 24
Property ceasing to qualify for pool
EE 25
Depreciation loss for plant variety rights application granted in 2005–06 or later income year
Depreciation rates
EE 26
Setting of economic depreciation rate
EE 27
Economic rate for certain depreciable property
EE 28
Economic rate for buildings
EE 29
Economic rate for certain aircraft and motor vehicles
EE 30
Economic rate for plant, equipment, or building, with high residual value
EE 31
Annual rate for item acquired in person’s 1995–96 or later income year
EE 32
Election in relation to certain depreciable property acquired on or after 1 April 2005
EE 33
Annual rate for fixed life intangible property
EE 34
Annual rate for patent granted in 2005–06 or later income year
EE 34B
Annual rate for design registrations
EE 35
Special rate or provisional rate
EE 36
Using economic rate or provisional rate instead of special rate
Improvements, items of low value, or items no longer used
EE 37
Improvements
EE 38
Items of low value
EE 39
Items no longer used
Transfers of depreciable property: associated persons and certain amalgamations
EE 40
Transfer of depreciable property on or after 24 September 1997
EE 41
Transfer of depreciable property on certain amalgamations on or after 14 May 2002
EE 42
Transfer of radiocommunications licence right on or after 24 September 1997
EE 43
Transfer of depreciable intangible property on or after 1 July 1997
Disposals and similar events
EE 44
Application of sections EE 48 to EE 51
EE 45
Consideration for purposes of section EE 44
EE 46
Items for purposes of section EE 44
EE 47
Events for purposes of section EE 44
EE 48
Effect of disposal or event
EE 49
Amount of depreciation recovery income when item partly used for business
EE 50
Amount of depreciation loss when item partly used to produce income
EE 51
Amount of depreciation recovery income when lost or stolen items recovered
EE 52
Amount of depreciation recovery income when compensation received
EE 53
Unused geothermal well brought into use
Interpretation provisions
EE 54
Cost: GST
Adjusted tax value
EE 55
Meaning of adjusted tax value
EE 56
Formula
EE 57
Base value in section EE 56 when none of sections EE 58, EE 59, and EZ 22(1) applies
EE 58
Base value in section EE 56 when no previous deduction
EE 59
Base value in section EE 56 when property is petroleum-related depreciable property
EE 60
Total deductions in section EE 56
Definitions
EE 61
Meaning of annual rate
EE 62
Meaning of depreciable intangible property
EE 63
Meaning of estimated useful life
EE 64
Meaning of excluded depreciable property
EE 65
Meaning of maximum pooling value
EE 66
Meaning of poolable property
EE 67
Other definitions
Subpart EF—Taxes and levies
EF 1
Fringe benefit tax
EF 2
Employer’s superannuation contribution tax
EF 3
Accident compensation levies and premiums
EF 4
Use of money interest payable by Commissioner
EF 5
Use of money interest payable by person
EF 6
Different tax years
[Repealed]
Subpart EG—Recognition of accounting treatment
EG 1
Election to use balance date used in foreign country
EG 2
Adjustment for changes to accounting practice
EG 3
Allocation of income, deductions, and tax credits by portfolio tax rate entity
[Repealed]
Subpart EH—Income equalisation schemes
Introductory provisions
EH 1
Income equalisation schemes
EH 2
Deposits to be paid into Crown Bank Account
Main income equalisation scheme
Application
EH 3
Persons to whom main income equalisation scheme applies
Deposits and accounts
EH 4
Main deposit
EH 5
Main income equalisation account
Interest
EH 6
Interest on deposits in main income equalisation account
Deduction
EH 7
Deduction of deposit
Refunds: automatic
EH 8
Refund of excess deposit
EH 9
Income does not include excess deposit
EH 10
Refund at end of 5 years
EH 11
Income when refund given at end of 5 years
Refunds: on application
EH 12
Application for refund by person, trustee of estate, Official Assignee, or liquidator
EH 13
Refund on application
EH 14
Income when refund given on application
EH 15
Refund for development or recovery
EH 16
Income when refund given for development or recovery
EH 17
Refund on retirement
EH 18
Income when refund given on retirement, and election to allocate amount to earlier year
EH 19
Refund on death
EH 20
Income when refund given on death
EH 21
Income when refund given on death, and election to allocate amount to earlier year
EH 22
Income when refund given on death, and election to allocate amount to later year or years
EH 23
Refund on bankruptcy
EH 24
Income when refund given on bankruptcy
EH 25
Refund on liquidation
EH 26
Income when refund given on liquidation
Refunds: general provisions
EH 27
Amendment of assessment
EH 28
Minimum refund
EH 29
Deposits from which refunds come
Tax credit
EH 30
When person entitled to tax credit
EH 31
Kind and amount of refund that entitles person to tax credit
EH 32
Kind of person entitled to tax credit
EH 33
Amount of tax credit
Definitions
EH 34
Meaning of income from forestry
EH 35
Meaning of main maximum deposit
EH 36
Other definitions
Adverse event income equalisation scheme
Application
EH 37
Persons to whom adverse event income equalisation scheme applies
[Repealed]
Deposits and accounts
EH 38
Adverse event deposit
[Repealed]
EH 39
Adverse event income equalisation account
[Repealed]
Interest
EH 40
Interest on deposits in adverse event income equalisation account
[Repealed]
Deduction
EH 41
Deduction of deposit
[Repealed]
Refunds: automatic
EH 42
Refund of excess deposit
[Repealed]
EH 43
Income does not include excess deposit
[Repealed]
Refunds: on application
EH 44
Application for refund by person, trustee of estate, Official Assignee, or liquidator
[Repealed]
EH 45
Refund on application
[Repealed]
EH 46
Income when refund given on application
[Repealed]
EH 47
Refund on retirement
[Repealed]
EH 48
Income when refund given on retirement, and election to allocate amount to earlier year
[Repealed]
EH 49
Refund on death
[Repealed]
EH 50
Income when refund given on death
[Repealed]
EH 51
Income when refund given on death, and election to allocate amount to earlier year
[Repealed]
EH 52
Income when refund given on death, and election to allocate amount to later year or years
[Repealed]
EH 53
Refund on bankruptcy
[Repealed]
EH 54
Income when refund given on bankruptcy
[Repealed]
EH 55
Refund on liquidation
[Repealed]
EH 56
Income when refund given on liquidation
[Repealed]
Refunds: general provisions
EH 57
Amendment of assessment
[Repealed]
EH 58
Minimum refund
[Repealed]
EH 59
Deposits from which refunds come
[Repealed]
Transfers
EH 60
Transfer of deposit
[Repealed]
Definitions
EH 61
Meaning of adverse event maximum deposit
[Repealed]
EH 62
Other definitions
[Repealed]
Thinning operations income equalisation scheme
Application
EH 63
Persons to whom thinning operations income equalisation scheme applies
Deposits and accounts
EH 64
Thinning operations deposit
EH 65
Thinning operations income equalisation account
Interest
EH 66
Interest on deposits in thinning operations income equalisation account
Deductions
EH 67
Deduction of deposit
Refunds: automatic
EH 68
Refund of excess deposit
EH 69
Income does not include excess deposit
Refunds: on application
EH 70
Application for refund by person or liquidator
EH 71
Refund on application
EH 72
Income when refund given on application
EH 73
Refund for development or recovery
EH 74
Income when refund given for development or recovery
EH 75
Refund on liquidation
EH 76
Income when refund given on liquidation
Refunds: general provisions, and tax credits
EH 77
Sections of main income equalisation scheme that apply to thinning operations income equalisation scheme
Definitions
EH 78
Meaning of thinning operations maximum deposit
EH 79
Other definitions
Subpart EI—Spreading of specific income
Farming and forestry
EI 1
Spreading backward of income from timber
Inflation-indexed instruments
EI 2
Interest from inflation-indexed instruments
Intellectual property
EI 3
Assigning or granting copyright
EI 4
Spreading income from patent rights
Land
EI 4B
Consideration for agreement to grant, renew, extend, or transfer leasehold estate or licence
EI 5
Amount paid to lessor for non-compliance with covenant for repair
EI 6
Amount paid for non-compliance: when lessor ceases to own land
EI 7
Leases: income derived in anticipation
EI 8
Disposal of land to the Crown
Shareholder-employees
EI 9
Matching rule for employment income of shareholder-employee
Subpart EJ—Spreading of specific expenditure
Farming and forestry
EJ 1
Spreading backward of deductions for costs of timber
EJ 2
Spreading forward of deductions for repairs to fishing boats
EJ 3
Spreading forward of fertiliser expenditure
Films
EJ 4
Expenditure incurred in acquiring film rights in feature films
EJ 5
Expenditure incurred in acquiring film rights in films other than feature films
EJ 6
Certification of New Zealand films
EJ 7
Film production expenditure for New Zealand films having no large budget film grant
EJ 8
Film production expenditure for other films having no large budget film grant
EJ 9
Avoidance arrangements
Leases
EJ 10
Personal property lease payments
EJ 10B
IFRS leases
EJ 11
Amount paid by lessee for non-compliance with covenant for repair
Petroleum mining
EJ 12
Petroleum development expenditure: default allocation rule
EJ 12B
Petroleum development expenditure: reserve depletion method
EJ 13
Permanently ceasing petroleum mining operations
EJ 13B
Dry well drilled
EJ 13C
Well not producing
EJ 14
Spreading deduction backwards
[Repealed]
EJ 15
Disposal of petroleum mining asset
EJ 16
Disposal of petroleum mining asset to associate
EJ 17
Partnership interests and disposal of part of asset
EJ 18
Petroleum mining operations outside New Zealand
Definitions
EJ 19
Meaning of offshore development
[Repealed]
EJ 20
Meaning of petroleum mining development
Mineral mining
EJ 20B
Certain mining expenditure spread over assumed life of mine
EJ 20C
Length of spreading period
EJ 20D
Measurement of assumed life of mine and application to rate
EJ 20E
Certain mining expenditure spread on basis of units of production
Superannuation contributions
EJ 21
Contributions to employees’ superannuation schemes
Research, development, and resulting market development
EJ 22
Deductions for market development: product of research, development
EJ 23
Allocation of deductions for research, development, and resulting market development
Aircraft engine overhauls
EJ 24
Allocation of expenditure on aircraft engine overhauls
EJ 25
Allocation of expenditure on aircraft engine overhauls: election by IFRS user
EJ 26
Allocation of expenditure on aircraft engine overhauls: election by operator of single aircraft
EJ 27
Disposal of aircraft engine or aircraft
Subpart EK—Environmental restoration accounts
EK 1
Payment to Crown Bank Account
EK 2
Persons who may make payment to environmental restoration account
EK 3
Payments to environmental restoration account
EK 4
Environmental restoration account
EK 5
Details to be provided with payment to environmental restoration account
EK 6
Interest on payments to environmental restoration account
EK 7
Deduction for payment
EK 8
Deduction for transfer
EK 9
Refund of payment if excess, lacking details
EK 10
Certain refunds not income
EK 11
Application for refund
EK 12
Refund if application or excess balance
EK 13
Income when refund given on application
EK 14
Application for transfer
EK 15
Transfer on application
EK 16
Transfer on death, bankruptcy, or liquidation
EK 17
Minimum refund or transfer
EK 18
Payments from which refunds come
EK 19
Environmental restoration account of amalgamating company
EK 20
Environmental restoration account of consolidated group company
EK 21
Notices in electronic format
EK 22
Meaning of maximum payment
EK 23
Other definitions
Subpart EL—Allocation of deductions for excess residential land expenditure
Introductory provisions
EL 1
Outline of subpart: general
EL 2
Outline of subpart: specific provisions
EL 3
Definitions for this subpart
Allocation rules for residential rental property
EL 4
Allocation of deductions for loss-making residential rental properties
EL 5
When residential portfolios sold
EL 6
Choosing to apply rules on property-by-property basis
EL 7
When property A sold
EL 8
Treatment of previously transferred amounts on fully-taxed disposals
[Repealed]
Exclusions from rules
EL 9
Main home exclusion
EL 10
Exclusion for land held on revenue account
EL 11
Exclusion for property held by certain persons and entities
EL 12
Exclusion for mixed-use assets
EL 13
Exclusion for property provided as employee accommodation
Application of rules by certain entities
EL 14
Continuity rules for companies
EL 15
Transfers between companies in wholly-owned groups
Interposed entities
EL 16
Interests in residential land-rich entities
EL 17
Calculations for section EL 16
EL 18
Modifications when entities transparent
EL 19
Valuation of assets
Allocation rules for bright-line disposals of land
EL 20
Allocation of deductions related to bright-line disposals of residential land
Subpart EM—Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests
EM 1
Australian non-attributing shares and attributing FDR method interests
EM 2
Who does this subpart apply to?
EM 3
What hedges does this subpart apply to?
EM 4
Elections
EM 5
Fair dividend rate hedge portions: hedge-by-hedge methods
EM 5B
Fair dividend rate hedge portions: portfolio method
EM 6
Income and expenditure for fair dividend rate hedge portions
EM 7
Quarterly test of fair dividend rate hedge portions
EM 8
Some definitions
Subpart EW—Financial arrangements rules
Introductory provisions
EW 1
What this subpart does
EW 2
Relationship of financial arrangements rules with other provisions
Meaning of financial arrangement and excepted financial arrangement
EW 3
What is a financial arrangement?
EW 4
What is not a financial arrangement?
EW 5
What is an excepted financial arrangement?
EW 6
Relationship between financial arrangements and excepted financial arrangements
EW 7
Change from private or domestic purpose
EW 8
Election to treat certain excepted financial arrangements as financial arrangements
Application of financial arrangements rules
EW 9
Persons to whom financial arrangements rules apply
EW 10
Financial arrangements to which financial arrangements rules apply
EW 11
What financial arrangements rules do not apply to
Calculation and allocation of income and expenditure over financial arrangement’s term
EW 12
When use of spreading method required
EW 13
When use of spreading method not required
EW 14
What spreading methods do
EW 15
What is included when spreading methods used
EW 15B
Applying IFRSs to financial arrangements
EW 15C
Preparing and reporting methods
EW 15D
IFRS financial reporting method
EW 15E
Determination alternatives
EW 15F
Expected value method
EW 15G
Modified fair value method
EW 15H
Mandatory use of some determinations
EW 15I
Mandatory use of yield to maturity method for some arrangements
EW 16
Yield to maturity method or alternative
EW 17
Straight-line method
EW 18
Market valuation method
EW 19
Choice among some spreading methods
EW 20
Determination method or alternative
EW 21
Financial reporting method
EW 22
Default method
EW 23
Failure to use method for financial reporting purposes
EW 24
Consistency of use of spreading method
EW 25
Consistency of use of straight-line method and market valuation method
EW 25B
Consistency of use of IFRS method
EW 26
Change of spreading method
EW 27
Spreading method adjustment formula
Calculation and allocation of income and expenditure when rights and obligations under financial arrangement cease
EW 28
How base price adjustment calculated
EW 29
When calculation of base price adjustment required
EW 30
When calculation of base price adjustment not required
EW 31
Base price adjustment formula
Consideration
Consideration when financial arrangement involves property or services
EW 32
Consideration for agreement for sale and purchase (ASAP) of property or services, hire purchase agreement, specified option, or finance lease
EW 33
Consideration for hire purchase agreement or finance lease
EW 33B
Foreign ASAPs: designated FX hedges
EW 33C
Consideration in foreign currency: some agreements for sale and purchase
EW 33D
Foreign ASAPs: contingencies for business combinations
EW 34
Consideration in foreign currency
EW 35
Value relevant for non-financial arrangements rule
Consideration treated as paid to person
EW 36
Consideration when person exits from rules: accrued entitlement
EW 37
Consideration when person enters rules: accrued obligation
EW 38
Consideration when disposal for no, or inadequate, consideration
EW 39
Consideration affected by unfavourable factors
Consideration treated as paid by person
EW 40
Consideration when person exits from rules: accrued obligation
EW 41
Consideration when person enters rules: accrued entitlement
EW 42
Consideration when acquisition for no, or inadequate, consideration
EW 43
Consideration when debt disposed of at discount to associate of debtor
EW 44
Consideration when debt forgiven for natural love and affection
EW 45
Consideration when debtor released from obligation
EW 46
Consideration when debtor released as condition of new start grant
[Repealed]
EW 46B
Consideration when party changes from fair value method
EW 46C
Consideration when debt remitted within economic group
EW 46D
Consideration when insolvent company’s debt repaid with consideration received for issuing shares
Consideration when legal defeasance has occurred
EW 47
Legal defeasance
Consideration for cessation of LTCs and dissolution of partnerships
EW 47B
Cessation of LTCs and dissolution of partnerships
Consideration when anti-avoidance provision applies
EW 48
Anti-avoidance provisions
Income and deduction provisions specifically related to financial arrangements
EW 49
Income and deduction when debt disposed of at discount to associate of debtor
EW 49B
Guarantees for associated persons
EW 50
Income when debt forgiven to trustee
EW 51
Deduction for security payment
Treatment of original share acquired under financial arrangement
EW 52
Share supplier under share-lending arrangement
EW 52B
Excepted financial arrangements involving pre-1990 forest land emissions units
One kind of avoidance
EW 53
Adjustment required
Application of financial arrangements rules to cash basis persons
EW 54
Meaning of cash basis person
EW 55
Effect of being cash basis person
EW 56
Natural person
[Repealed]
EW 57
Thresholds
EW 58
Financial arrangements, income, and expenditure relevant to criteria
EW 59
Exclusion by Commissioner
EW 60
Trustee of deceased’s estate
EW 61
Election to use spreading method
EW 62
When and how calculation of cash basis adjustment required
EW 63
Cash basis adjustment formula
Subpart EX—Controlled foreign company and foreign investment fund rules
Controlled foreign company (CFC) rules
When is a company a controlled foreign company?
EX 1
Meaning of controlled foreign company
Calculation of person’s control interest
EX 2
Four categories for calculating control interests
EX 3
Control interest: total of direct, indirect, and associated person interests
EX 4
Limits to requirement to include associated person interests
EX 5
Direct control interests
EX 6
Direct control interests include options and similar rights
EX 7
Indirect control interests
Calculation of person’s income interest
EX 8
Income interests: total of direct and indirect interests
EX 9
Direct income interests
EX 10
Indirect income interests
EX 11
Options and similar rights in certain cases
EX 12
Reduction of total income interests
EX 13
Income interests of partners
[Repealed]
Ten percent threshold and variations in income interest level
EX 14
Attribution: 10% threshold, not PIE
EX 15
Associates and 10% threshold
EX 16
Income interests for certain purposes
EX 17
Income interest if variations within period
Calculation of attributed CFC income or loss
EX 18A
Scheme for finding person’s attributed CFC income or loss
EX 18
Formula for calculating attributed CFC income or loss
EX 19
Taxable distribution from non-complying trust
EX 20
Reduction in attributed CFC loss
Attributable CFC amount and net attributable CFC income or loss
EX 20B
Attributable CFC amount
EX 20C
Net attributable CFC income or loss
EX 20D
Adjustment of cost fraction for excessively debt funded CFC
EX 20E
Relative debt-asset ratio for CFC
Calculation of branch equivalent income or loss
EX 21
Attributable CFC amount and net attributable CFC income or loss: calculation rules
Non-attributing active CFCs
EX 21B
Non-attributing active CFCs
Tests for non-attributing active CFCs
EX 21C
Applicable accounting standards for section EX 21E
EX 21D
Non-attributing active CFC: default test
EX 21E
Non-attributing active CFC: test based on accounting standard
EX 21F
Part-period calculations
Non-attributing Australian CFCs
EX 22
Non-attributing Australian CFCs
EX 23
Tax concession grey list CFCs
[Repealed]
Change of residence of companies
EX 24
Companies moving to or from New Zealand
Change of CFC’s balance date
EX 25
Change of CFC’s balance date
Ownership measurement concession
EX 26
Use of quarterly measurement
Anti-avoidance rule: stapled stock
EX 27
Anti-avoidance rule: stapled stock
Foreign investment fund (FIF) rules
What is a foreign investment fund?
EX 28
Meaning of FIF
Attributing interests in FIFs
EX 29
Attributing interests in FIFs
EX 30
Direct income interests in FIFs
EX 31
Exemption for ASX-listed Australian companies
EX 32
Exemption for Australian unit trusts with adequate turnover or distributions
EX 33
Exemption for Australian regulated superannuation savings
EX 34
CFC rules exemption
EX 35
Exemption for interest in FIF resident in Australia
EX 36
Venture capital company emigrating to grey list country: 10-year exemption
EX 37
Grey list company owning New Zealand venture capital company: 10-year exemption
EX 37B
Share in grey list company acquired under venture investment agreement
EX 38
Exemptions for employee share schemes
EX 39
Terminating exemption for grey list company with numerous New Zealand shareholders
[Repealed]
EX 40
Foreign exchange control exemption
EX 41
Income interest of non-resident or transitional resident
EX 42
New resident’s accrued superannuation entitlement exemption
[Repealed]
EX 42B
Interests in foreign superannuation scheme other than FIF superannuation interests
EX 43
Non-resident’s pension or annuity exemption
Calculation of FIF income or loss
EX 44
Five calculation methods
EX 45
Exclusion of amounts of death benefit
EX 46
Limits on choice of calculation methods
EX 47
Method required for certain non-ordinary shares
EX 47B
Method required for shares subject to certain returning share transfers
EX 48
Default calculation method
EX 49
Accounting profits method
[Repealed]
EX 50
Attributable FIF income method
EX 51
Comparative value method
EX 52A
Fair dividend rate method: use of different forms
EX 52
Fair dividend rate annual method
EX 53
Fair dividend rate periodic method
EX 54
Fair dividend rate method and cost method: when periods affected by share reorganisations
EX 55
Deemed rate of return method
EX 56
Cost method
EX 57
Conversion of foreign currency amounts: most methods
EX 58
Additional FIF income or loss if CFC owns FIF
Relationship with other provisions in Act
EX 59
Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method
EX 60
Top-up FIF income: deemed rate of return method
EX 61
Top-up FIF income: 1 April 1993 uplift interests
Changing calculation method
EX 62
Limits on changes of method
EX 63
Consequences of changes in method
Cases of entry into and exit from FIF rules
EX 64
Migration of persons holding FIF interests
EX 65
Changes in application of FIF exemptions
EX 66
Entities emigrating from New Zealand
EX 66B
Entities ceasing to be FIFs
EX 67
FIF rules first applying to interest on or after 1 April 2007
EX 67B
Revaluation of inherited interests in grey list companies
Measurement of cost
EX 68
Measurement of cost
Change of FIF’s balance date
EX 69
Change of FIF’s balance date
Market value rules
EX 70
Market value of life policy and superannuation entitlements
EX 71
Non-market transactions in FIF interests
Commissioner’s default assessment power
EX 72
Commissioner’s default assessment power
Election relating to CFC or FIF
EX 73
Election that CFC not non-attributing active CFC or FIF not non-attributing active FIF
Subpart EY—Life insurance rules
Introductory provisions
EY 1
What this subpart does
EY 2
Policyholder base
EY 3
Shareholder base
EY 4
Apportionment of income of particular source or nature, and of tax credits
EY 5
Part-year tax calculations
EY 6
Actuarial advice and guidance
EY 7
Meaning of claim
EY 8
Meaning of life insurance
EY 9
Meaning of life insurance policy
EY 10
Meaning of life insurer
EY 11
Superannuation schemes providing life insurance
EY 12
Meaning of life reinsurance
EY 13
Meaning of life reinsurance policy
EY 14
Life insurance and life reinsurance: how sections relate
Policyholder base
Non-participation policies
EY 15
Policyholder base income: non-participation policies
EY 16
Policyholder base allowable deductions: non-participation policies
EY 16B
Policyholder base allowable deductions: consideration for investment management services
Profit participation policies
EY 17
Policyholder base income: profit participation policies
EY 18
Policyholder base allowable deductions: profit participation policies
Shareholder base
Non-participation policies
EY 19
Shareholder base income: non-participation policies
EY 19B
Shareholder base income: consideration credited for investment management services
EY 20
Shareholder base allowable deductions: non-participation policies
Profit participation policies
EY 21
Shareholder base income: profit participation policies
EY 22
Shareholder base allowable deductions: profit participation policies
Non-participation policies: reserves
EY 23
Reserving amounts for life insurers: non-participation policies
EY 24
Outstanding claims reserving amount: non-participation policies not annuities
EY 25
Premium smoothing reserving amount: non-participation policies not annuities
EY 26
Unearned premium reserving amount: non-participation policies not annuities
EY 27
Capital guarantee reserving amount: non-participation policies not annuities
Shareholder base other profit: profit participation policies
EY 28
Shareholder base other profit: profit participation policies that are existing business
EY 29
Shareholder base other profit: profit participation policies that are new business
Transitional adjustments and annuities
EY 30
Transitional adjustments: life risk
EY 31
Annuities
EY 32
Mortality profit formula: when partial reinsurance exists
[Repealed]
EY 33
Mortality profit formula: individual result may be negative only in some cases
[Repealed]
EY 34
Mortality profit formula: negative result
[Repealed]
EY 35
How discontinuance profit is calculated
[Repealed]
EY 36
Discontinuance profit for income year
[Repealed]
EY 37
Discontinuance profit formula (existing policies)
[Repealed]
EY 38
Discontinuance profit formula (new policies)
[Repealed]
EY 39
Discontinuance profit formula (existing policies): when partial reinsurance exists
[Repealed]
EY 40
Discontinuance profit formula (new policies): when partial reinsurance exists
[Repealed]
EY 41
Discontinuance profit formulas: individual result may never be negative
[Repealed]
EY 42
How policyholder income is calculated
[Repealed]
EY 43
Policyholder income formula
[Repealed]
EY 43B
Policyholder income formula: FDR adjustment
[Repealed]
EY 43C
Policyholder income formula: PILF adjustment
[Repealed]
EY 44
Policyholder income formula: when partial reinsurance exists
[Repealed]
EY 45
Policyholder income formula: when life insurance business transferred
[Repealed]
EY 46
Income from disposal of property
[Repealed]
EY 47
Deductions for disposal of property
[Repealed]
Non-resident life insurers
EY 48
Non-resident life insurers with life insurance policies in New Zealand
EY 49
Non-resident life insurer becoming resident
Subpart EZ—Terminating provisions
Life insurance
EZ 1
Life insurers acquiring property before 1 April 1988
EZ 2
Deductions for disposal of property: 1982–83 and 1989–90 income years
Petroleum mining
EZ 3
Petroleum development expenditure from 1 October 1990 to 15 December 1991
Livestock
EZ 4
Valuation of livestock bailed or leased as at 2 September 1992
EZ 4B
Cattle destroyed because of Mycoplasma bovis: spreading
EZ 5
Reduction: bloodstock not previously used for breeding in New Zealand: pre-1 August 2006
EZ 6
Reduction: broodmare previously used for breeding in New Zealand: pre-1 August 2006
EZ 6B
National minimum price threshold for 2019 calendar year
Patent rights
EZ 7
Acquiring patent rights before 1 April 1993
Leases of land
EZ 8
Premium paid on land leased before 1 April 1993
Depreciation
EZ 9
Pool method for items accounted for by globo method for 1992–93 income year
EZ 10
Pool items accounted for by globo method for 1992–93 income year
EZ 11
Amounts of depreciation recovery income and depreciation loss for part business use up to 2004–05 income year
EZ 12
Amount of depreciation loss for item acquired from associated person on or before 23 September 1997
EZ 13
Annual rate for item acquired on or after 1 April 1993 and before end of person’s 1994–95 income year
EZ 14
Pre-1993 depreciation rate
EZ 15
Annual rate for excluded depreciable property: 1992–93 tax year
EZ 16
Amount of depreciation loss for plant or machinery additional to section EZ 15 amount
EZ 17
Additional amount of depreciation loss: between 16 December 1991 and 1 April 1994
EZ 18
Section EZ 17 amount of depreciation loss when items transferred between companies in wholly-owned group before 1 April 1993
EZ 19
Section EZ 17 amount of depreciation loss when person previously exempt from tax acquires item
EZ 20
Adjusted tax value for software acquired before 1 April 1993
EZ 21
Sections EE 45 and EE 47: permanent removal: allowance before 1 April 1995
EZ 22
Base value and total deductions in section EE 56: before 1 April 1995
EZ 23
Economic rate for plant or equipment acquired before 1 April 2005 and buildings acquired before 19 May 2005
EZ 23BA
Aircraft acquired before 2017–18 income year: adjusted tax value, base value, reduced; total deductions increased
EZ 23B
Property acquired after depreciable property affected by Canterbury earthquakes
EZ 23BB
Interest in property acquired after depreciable property affected by Canterbury earthquakes
EZ 23BC
Property acquired after depreciable property affected by Hurunui/Kaikōura earthquakes
EZ 23BD
Loss on disposal of grandparented structure
EZ 23C
Insurance for Canterbury earthquake damage of property: treatment as disposal and reacquisition
[Repealed]
EZ 23D
Insurance for Canterbury earthquake damage of property: limit on depreciation recovery income
[Repealed]
EZ 23E
Item treated as available for use if access restricted due to Canterbury earthquake
[Repealed]
EZ 23F
Insurance for Canterbury earthquake damage causing disposal: optional timing rule for income, deductions
[Repealed]
EZ 23G
Insurance for repairs of Canterbury earthquake damage: optional timing rule for income, deductions
[Repealed]
Definitions
EZ 24
Meaning of new asset
EZ 25
Meaning of New Zealand-new asset
EZ 26
Meaning of qualifying capital value
EZ 27
Meaning of qualifying improvement
EZ 28
Meaning of qualifying asset
Accident insurance
EZ 29
Private insurers under Accident Insurance Act 1998
EZ 30
Base premium for 1998–99 premium year under Accident Insurance Act 1998
Controlled foreign company and foreign investment fund rules
EZ 31
Disclosure restrictions on grey list CFCs before 2011–12
[Repealed]
EZ 32
Terminating exemption for grey list FIF investing in Australasian listed equities
[Repealed]
EZ 32B
Transitional rule for IFRS reporting
[Repealed]
EZ 32C
Treatment in section EX 20C of currency effects on CFC’s borrowing
[Repealed]
EZ 32D
Value of asset fraction: CFC with excessive debt funding and loan entered before 21 June 2012
EZ 32E
Change in section EX 20B for income of CFC insurer: interest on terminal tax
EZ 32F
Applicable accounting standard for section EX 21E: former generally accepted accounting practice without IFRS
EZ 32G
Person deriving pension from foreign superannuation scheme and returning as income before 1 April 2014
Old financial arrangements rules
EZ 33
Application of old financial arrangements rules
EZ 34
Election to apply financial arrangements rules in subpart EW
EZ 35
Accruals in relation to income and expenditure in respect of financial arrangements
EZ 36
Excepted financial arrangement that is part of financial arrangement
EZ 37
Cash basis holder
EZ 38
Income and expenditure where financial arrangement redeemed or disposed of
EZ 39
Forgiveness of debt
EZ 40
Accrued income written off
EZ 41
Disposal of debt to associate of debtor
EZ 42
Post facto adjustment
EZ 43
Variable principal debt instruments
EZ 44
Relationship with rest of Act
EZ 45
Application of old financial arrangements rules
EZ 46
Election to treat short term trade credit as financial arrangement
EZ 47
Election to continue to treat certain excepted financial arrangements as financial arrangements
EZ 48
Definitions
EZ 49
Determination of core acquisition price where consideration for property denominated in foreign currency
EZ 50
Rules for non-market transactions
EZ 51
Transitional adjustment when changing to financial arrangements rules
EZ 52
References to new rules include old rules
EZ 52B
Consistency of use of IFRS method: Determination G3 change allowed
EZ 52C
Change of spreading method: Determination G22 to Determination G22A
EZ 52D
Base price adjustment: financial arrangements to which Determination G22 and Determination G22A applied
Life insurance transitional adjustment: expected death strain
Expected death strain formulas
EZ 53
How expected death strain is calculated
EZ 54
Expected death strain formulas
EZ 55
Expected death strain formulas: option when more than 1 life insured
EZ 56
Expected death strain formula (life): when annuity payable on death
EZ 57
Expected death strain formulas: when annuity payable on survival to date or age specified in policy
EZ 58
Expected death strain formula (life): when partial reinsurance exists
Actuarial reserves
EZ 59
Meaning of actuarial reserves
EZ 60
Actuarial reserves: calculation
Entry to new life insurance regime: transitional and miscellaneous provisions
EZ 61
Allowance for cancelled amount: spreading
EZ 62
Reinsurance transition: life financial reinsurance may be life reinsurance
EZ 63
Disposal and acquisition upon entry
Restructuring under New Zealand Railways Corporation Restructuring Act 1990
EZ 64
New Zealand Railways Corporation restructure: purpose and initial amounts for tax purposes
EZ 65
Expenditure or loss incurred, and amounts derived
EZ 66
Prepayments
EZ 67
Leased assets
EZ 68
Definitions
IFRS financial reporting method
EZ 69
IFRS financial reporting method: interest-free and low-interest loans
EZ 69B
IFRS financial reporting method: equity or other comprehensive income
Damage from Canterbury earthquakes
EZ 70
Insurance for Canterbury earthquake damage of property: treatment as disposal and reacquisition
EZ 71
Insurance for Canterbury earthquake damage of property: limit on depreciation recovery income
EZ 72
Item treated as available for use if access restricted due to Canterbury earthquake
EZ 73
Insurance for Canterbury earthquake damage causing disposal: optional timing rule for income, deductions
EZ 74
Insurance for repairs of Canterbury earthquake damage: optional timing rule for income, deductions
EZ 75
Consideration for property or services: IFRS foreign ASAPs before 2014–15 income year
EZ 76
Consideration for property or services: non-IFRS foreign ASAPs before 2014–15 income year
EZ 77
Substituting debentures repeal: transitional rules
Damage from Hurunui/Kaikōura earthquakes
EZ 78
Insurance for Hurunui/Kaikōura earthquake damage of property: treatment as disposal and reacquisition
EZ 79
Insurance for Hurunui/Kaikōura earthquake damage of property: limit on depreciation recovery income
Income equalisation schemes
EZ 80
Refund of excess deposit in main income equalisation account as consequence of election under section EZ 4B
EZ 81
Refund of excess deposit in adverse event income equalisation account as consequence of election under section EZ 4B
Adverse event income equalisation accounts
EZ 82
Transfers of deposits when adverse event income equalisation accounts abolished
Part F Recharacterisation of certain transactions
Subpart FA—Recharacterisation of certain commercial arrangements
Introductory provision
FA 1
What this subpart does
Debentures and shares
FA 2
Recharacterisation of certain debentures
FA 2B
Stapled debt securities
FA 3
Recharacterisation of certain dividends: recovery of cost of shares held on revenue account
FA 4
Recharacterisation of shareholder’s base: company reacquiring share
Leases
FA 5
Assets acquired and disposed of after deduction of payments under lease
Finance leases
FA 6
Recharacterisation of amounts derived under finance leases
FA 7
Determining amount of loan
FA 8
Deductibility of expenditure under finance lease
FA 9
Treatment when lease ends: lessee acquiring asset
FA 10
Treatment when lease ends: lessor acquiring asset
FA 11
Adjustments for leases that become finance leases
FA 11B
Adjustments for certain operating leases
Hire purchase agreements
FA 12
Recharacterisation of amounts derived under hire purchase agreements
FA 13
Agreements recharacterised as sale with finance provided
FA 14
Deductibility of expenditure or loss under hire purchase agreement
FA 15
Treatment when agreement ends: seller acquiring property
FA 16
Treatment when agreement ends: when seller is cash basis person
FA 17
Treatment when agreement ends: when buyer is cash basis person
FA 18
Treatment of amounts paid in income years after agreement ends
Subpart FB—Transfers of relationship property
FB 1
When this subpart applies
FB 1B
Meaning of settlement of relationship property and property
FB 1C
Obligations for periods before and from transfer of property
FB 2
Personal property
FB 3A
Residential land
FB 3
Land acquired for certain purposes or under certain conditions
FB 4
Land under scheme for major development or division
FB 5
Disposal of land
FB 6
Timber or right to take timber
FB 7
Land with standing timber
FB 8
Patent applications and patent rights
FB 9
Financial arrangements rules
FB 10
Continuity provisions: shares and options
FB 10B
Look-through companies
FB 11
Pension payments to former employees
FB 12
Pension payments to former partners
FB 13
Trading stock
FB 14
Specified livestock
FB 15
Specified livestock valued under herd scheme
FB 16
Non-specified livestock
FB 17
High-priced livestock
FB 18
Bloodstock
FB 19
Leased assets
FB 20
Mining assets
[Repealed]
FB 21
Depreciable property
Subpart FC—Distribution, transmission, and gifts of property
Introductory provisions
FC 1
Disposals to which this subpart applies
FC 2
Transfer at market value
Exceptions for property transferred on death of person
FC 3
Property transferred to spouse, civil union partner, or de facto partner
FC 4
Property transferred to charities or to close relatives and others
FC 5
Land transferred to close relatives
FC 6
Forestry assets transferred to close relatives
FC 7
Transfer of prepaid property
FC 8
Transfer of certain financial arrangements
FC 9
Residential land transferred to executor, administrator, or beneficiary on death of person
Exceptions for residential land transferred to trustees of certain trusts or other entities
FC 9B
Residential land: certain transferors
FC 9C
Residential land: certain recipients
FC 9D
Residential land: certain recipients of Treaty of Waitangi land
Bankruptcy or insolvency of person under Insolvency Act 2006
FC 10
Transfers from person to Official Assignee under Insolvency Act 2006
Subpart FE—Interest apportionment on thin capitalisation
Introductory provisions
FE 1
What this subpart does
FE 2
When this subpart applies
FE 3
Interest apportionment for individuals
FE 4
Some definitions
FE 4B
Meaning of public project asset, public project debt, and public project participant debt
Interest apportionment rules
FE 5
Thresholds for application of interest apportionment rules
FE 6
Apportionment of interest by excess debt entity
FE 6B
Alternative apportionment of interest by some excess debt entities
FE 7
Apportionment of interest by reporting bank
FE 7B
Interest on public project debt for certain excess debt entities
FE 8
Measurement dates
FE 9
Elections
FE 10
Currency
FE 11
Disregarded increases or decreases in value
Calculations
FE 12
Calculation of debt percentages
FE 12B
Calculations for group for test and apportionment using interest-income ratio
FE 13
Financial arrangements entered into with persons outside group
Debt percentage of New Zealand group
FE 14
Consolidation of debts and assets
FE 15
Total group debt
FE 16
Total group assets
FE 16B
Total group non-debt liabilities
Debt percentage of worldwide group
FE 17
Consolidation of debts and assets
FE 18
Measurement of debts and assets of worldwide group
New Zealand banking group
FE 19
Banking group’s equity threshold
FE 20
Financial value and regulatory value
FE 21
Banking group’s New Zealand net equity
FE 22
Notional offshore investment
FE 23
Banking group’s funding debt
FE 24
Regulations
Determining membership of groups
New Zealand group
FE 25
New Zealand group for excess debt entity that is a company or non-resident owning body
FE 26
Identifying New Zealand parent
FE 27
Establishing companies under parent’s control
FE 28
Identifying members of New Zealand group
FE 29
Combining New Zealand groups owned by natural persons and trustees
FE 30
Ownership interests in companies outside New Zealand group
Worldwide group
FE 31
Worldwide group for corporate excess debt entity if not excess debt outbound company
FE 31B
Worldwide group for excess debt outbound companies
FE 31C
CFCs in worldwide group for natural persons or trustees described in section FE 2(1)(g)
FE 31D
Worldwide group for entity controlled by non-resident owning body or trustee
FE 32
Joint venture parties
New Zealand banking group
FE 33
New Zealand banking group
FE 34
Identifying ultimate parent
FE 35
Persons who may be excluded from banking groups
FE 36
Identifying members of New Zealand banking group in usual case
FE 36B
Identifying members of New Zealand banking group: Crown-owned, no interest apportionment
FE 37
Reporting bank for New Zealand banking group
Measuring ownership interests in companies
FE 38
Measuring ownership interests in companies
FE 39
Direct ownership interests
FE 40
Tiered ownership interests
FE 41
Treatment of associated persons’ interests
Subpart FF—Interest apportionment for conduit investment
[Repealed]
Introductory provisions
FF 1
What this subpart does
[Repealed]
FF 2
When interest apportionment rule applies
[Repealed]
FF 3
Steps required to determine treatment of excessive interest expenditure
[Repealed]
Interest apportionment rule
FF 4
Threshold for application of interest apportionment rule
[Repealed]
FF 5
Determination of excess amount of interest expenditure of group
[Repealed]
FF 6
Conduit tax relief
[Repealed]
FF 7
Surplus to foreign dividends
[Repealed]
Membership and debt percentages of foreign groups
FF 8
Identifying members of foreign groups
[Repealed]
FF 9
Calculating debt percentage of New Zealand foreign groups
[Repealed]
FF 10
Calculating debt percentage of consolidated foreign groups
[Repealed]
FF 11
Changes in foreign group membership
[Repealed]
Subpart FG—Treatment of notional loans to New Zealand branches of foreign banks
FG 1
When this subpart applies
FG 2
Notional loans
FG 3
Notional interest
Subpart FH—Hybrid and branch mismatches of deductions and income from multi-jurisdictional arrangements
FH 1
Subpart implements OECD recommendations for domestic law
FH 2
Order of application of provisions
FH 3
Payments under financial instruments producing deduction without income
FH 4
Receipts under financial instruments producing deduction without income
FH 5
Payments by New Zealand resident or New Zealand deducting branch producing deduction without income
FH 5B
Exception: when payee group not allowed deductions for supplies as prerequisites for payer supplies
FH 6
Receipts from non-resident or foreign deducting branch producing deduction without income
FH 7
Payments to person outside New Zealand producing deduction without income
FH 8
Expenditure or loss through hybrid entity or foreign deducting branch producing double deduction without double income
FH 9
Expenditure or loss of hybrid entity, or non-resident through deducting branch, producing double deduction without double income
FH 10
Expenditure or loss of dual resident company producing double deduction without double income
FH 11
Residents, or non-residents with deducting branches, having expenditure funding overseas hybrid mismatches
FH 12
Offset of mismatch amounts against surplus assessable income
FH 13
Election by borrower under financial arrangement
FH 14
Irrevocable election by owner of hybrid entity
FH 15
Definitions
Subpart FL—Emigration of resident companies
FL 1
What this subpart does
FL 2
Treatment of companies that become non-resident and their shareholders
FL 3
Treatment of companies that start being treated as non-resident and their shareholders
Subpart FM—Consolidated groups of companies
Introductory provisions
FM 1
What this subpart applies to
FM 2
Consolidation rules
FM 3
Liability of consolidated groups and group companies
FM 4
Limiting joint and several liability of group companies
FM 5
Liability when company leaves consolidated group
FM 6
Some general rules for treatment of consolidated groups
Calculating taxable income for consolidated group returns
Accounting generally
FM 7
Treatment of amounts derived or expenditure incurred
FM 8
Transactions between group companies: income
FM 9
Amounts that are company’s income
FM 10
Expenditure: intra-group transactions
FM 11
Expenditure: nexus with income derivation
FM 12
Expenditure when deduction would be denied to consolidated group
FM 13
Capital expenditure
FM 14
Part-year financial statements
Accounting for particular property
FM 15
Amortising property and revenue account property
FM 16
Land or business: certain farming or forestry expenditure
FM 17
Trading stock
FM 18
Financial arrangements: transfer from company A to company B
FM 19
Financial arrangements: transfer for fair and reasonable consideration
FM 20
Financial arrangements: transfer at market value
FM 21
Property transfers when companies leave consolidated groups
FM 22
Arrangements to avoid consolidation rules
FM 23
Arrangements for disposal of shares
Treatment of foreign dividends
FM 24
General treatment of foreign dividends
[Repealed]
FM 25
Reduction in payments for foreign dividends
[Repealed]
FM 26
Using tax losses to pay FDP
[Repealed]
FM 27
Refunds of FDP
[Repealed]
FM 28
Refund when consolidated group has loss
[Repealed]
FM 29
Treatment of credit balance in consolidated group’s FDP account
[Repealed]
FM 30
Application of certain provisions to consolidated groups
Membership of consolidated groups
Eligibility and restrictions
FM 31
Eligibility rules
FM 32
Restriction on membership of consolidated groups
FM 33
When membership is reduced
Nominated companies
FM 34
Nominated companies
Forming, joining, or leaving consolidated groups
FM 35
Forming consolidated group
FM 36
Joining existing consolidated group
FM 37
Leaving consolidated group
When membership starts and stops
FM 38
Notice requirements on forming or joining consolidated group
FM 39
Choosing to leave consolidated group
FM 40
Losing eligibility to be part of consolidated group
FM 41
No nominated company
FM 42
When company liquidated
Subpart FN—Imputation groups of companies
FN 1
When this subpart applies
FN 2
Imputation rules
FN 3
Liabilities of companies in imputation group
FN 4
Eligibility rules
FN 5
Imputation groups with reduced numbers
FN 6
Nominated companies
FN 7
Forming imputation groups
FN 8
Trans-Tasman imputation groups and resident imputation subgroups
FN 9
Joining existing imputation group
FN 10
When membership of imputation group ends
FN 11
Company choosing to leave imputation group
FN 12
Company no longer eligible or entitled to membership
FN 13
Imputation group with no nominated company
FN 14
Effect of liquidation of company
Subpart FO—Amalgamation of companies
Introductory provisions
FO 1
What this subpart does
FO 2
Amalgamation rules
FO 3
Resident’s restricted amalgamations
FO 4
Rights and obligations of amalgamated companies
FO 5
Amalgamations and remitted liabilities
Treatment of shares, income, expenditure, and bad debts
FO 6
Cancellation of shares
FO 7
Income derived after amalgamation
FO 8
Bad debts and expenditure or loss on resident’s restricted amalgamation
FO 9
Unexpired portion of prepaid expenditure
Property passing to amalgamated company on amalgamation
FO 10
When property passes on resident’s restricted amalgamation
FO 11
When property passes on amalgamation other than resident’s restricted amalgamation
FO 12
Financial arrangements: resident’s restricted amalgamation, companies in wholly-owned group
FO 13
Financial arrangements: resident’s restricted amalgamation, calculation method unchanged
FO 14
Financial arrangements: resident’s restricted amalgamation, other cases
FO 15
Financial arrangements: amalgamation other than resident’s restricted amalgamation
FO 16
Amortising property
FO 17
Land
Treatment of financial arrangements between amalgamating companies
FO 18
When amalgamating companies are parties to financial arrangement
FO 19
Calculation of outstanding accrued balance: consideration for discharge
FO 20
Calculation of outstanding accrued balance: amounts remitted
FO 21
When amalgamating companies are parties to financial arrangements: economic groups
Subpart FZ—Terminating provisions
Debentures
FZ 1
Treatment of interest payable under debentures issued before certain date
Leases
FZ 2
Effect of specified lease on lessor and lessee
FZ 3
Income of lessor under specified lease
FZ 4
Deductions under specified leases
Relationship property
FZ 5
Commercial bills
Estate property
FZ 6
Transitional valuation rule for estate property
Earthquake-affected group property
FZ 7
Valuation of group assets: insurance proceeds from Canterbury earthquake
Interest apportionment rules
FZ 8
Transition period for amendments to interest apportionment rules
Trading stock
FZ 9
Transfers of trading stock to non-associates, donee organisations, or public authorities
Part G Avoidance and non-market transactions
Subpart GA—Avoidance: general
GA 1
Commissioner’s power to adjust
GA 2
Commissioner’s power to adjust: fringe benefit tax
Subpart GB—Avoidance: specific
Arrangements involving dividend stripping
GB 1
Arrangements involving dividend stripping
Arrangements involving transfer pricing
GB 2
Arrangements involving transfer pricing
Arrangements involving tax losses
GB 3
Arrangements for carrying forward loss balances: companies’ ownership
GB 3BA
Arrangements for carrying forward loss balances: companies’ business activities
GB 3BAB
Arrangements to inject income into companies carrying forward loss balances
GB 3BAC
Arrangements to shift expenditure from companies carrying forward loss balances
GB 3B
Arrangements for carrying back net losses: companies
GB 4
Arrangements for grouping tax losses: companies
Arrangements to defeat continuity provisions
GB 5
Arrangements involving trust beneficiaries
Arrangements involving qualifying companies
GB 6
Arrangements involving qualifying companies
Arrangements involving controlled foreign companies
GB 7
Arrangements involving CFC control interests
GB 8
Arrangements involving attributed repatriation from CFCs
[Repealed]
GB 9
Temporary disposals of direct control or income interests
GB 10
Temporary acquisitions of direct control or income interests
GB 11
Temporary increases in totals for control interest categories
GB 12
Temporary reductions in totals for control interest categories
GB 13
When combination of changes reduces income
GB 14
When combination of changes increases loss
GB 15
CFC income or loss: arrangements related to quarterly measurement
GB 15BA
CFC income or loss: arrangements for inclusion of CFC in test group
GB 15B
Supplies affecting default test for non-attributing active CFC
GB 15C
Arrangements related to accounting test for non-attributing active CFC
Arrangements involving foreign investment funds
GB 16
FIF income or loss: arrangements for measurement day concessions
Arrangements involving film rights
GB 17
Excessive amounts for film rights or production expenditure
GB 18
Arrangements to acquire film rights or incur production expenditure
GB 19
When film production expenditure payments delayed or contingent
Arrangements involving petroleum and mineral mining
GB 20
Arrangements involving petroleum and mineral mining
Arrangements involving financial arrangements
GB 21
Dealing that defeats intention of financial arrangements rules
Arrangements involving trust beneficiary income
GB 22
Arrangements involving trust beneficiary income
Excessive remuneration
GB 23
Excessive remuneration to relatives
GB 24
Exemption for genuine contracts
GB 25
Close company remuneration to shareholders, directors, or relatives
GB 25B
Excessive effective look-through interests
Arrangements involving repatriation of commercial bills
GB 26
Arrangements involving repatriation of commercial bills
Attribution rule for income from personal services
GB 27
Attribution rule for income from personal services
GB 28
Interpretation of terms used in section GB 27
GB 29
Attribution rule: calculation
Arrangements involving restrictive covenants
GB 30
Arrangements to avoid taxation of restrictive covenant payments
Arrangements involving fringe benefit tax
GB 31
FBT arrangements: general
GB 32
Benefits provided to employee’s associates
Arrangements involving depreciation loss
GB 33
Arrangements involving depreciation loss
Arrangements involving imputation rules
GB 34
ICA arrangements for carrying amounts forward
GB 35
Imputation arrangements to obtain tax advantage
GB 36
Reconstruction of imputation arrangements to obtain tax advantage
GB 37
Arrangements for payment of dividend by other companies
GB 38
When sections GB 35 to GB 37 apply to consolidated groups
Arrangements involving foreign dividends
GB 39
FDP arrangements: general
[Repealed]
GB 40
BETA arrangements for carrying amounts forward
[Repealed]
GB 41
FDPA arrangements for carrying amounts forward
[Repealed]
Arrangements involving Maori authority credits
GB 42
Maori authority credit arrangements to obtain tax advantage
GB 43
Reconstruction of Maori authority credit arrangements to obtain tax advantage
Arrangements involving tax credits for families
GB 44
Arrangements involving tax credits for families
Arrangements involving money not at risk
GB 45
Arrangements involving money not at risk
GB 46
Deferral of surplus deductions from arrangements
GB 47
Calculation rules for sections GB 45 and GB 46
GB 48
Defined terms for sections GB 45 and GB 46
Arrangements involving returning share transfers
GB 49
Arrangements involving returning share transfers
Arrangements involving employee share schemes
GB 49B
Employee share schemes
Arrangements involving partners and owners
GB 50
Arrangements involving partners and owners
Arrangements involving interest apportionment rules
GB 51
Proportionality between amount of debt and ownership interests
GB 51B
Increases or decreases in value
Arrangements involving residential land
GB 52
Arrangements involving residential land: companies’ shares
GB 53
Arrangements involving residential land: trusts
Interest incurred in relation to certain land
GB 53B
Interposed residential property percentage: increases or decreases in value
GB 53C
On-lending at lower rate
Arrangements involving establishments and non-resident businesses
GB 54
Arrangements involving establishments
Arrangements involving tax credits for charitable or other public benefit gifts
GB 55
Arrangements involving tax credits for charitable or other public benefit gifts
Arrangements involving research and development tax credits
GB 56
Arrangements involving research and development tax credits
Subpart GC—Market value substituted
Disposals of trading stock or similar property
GC 1
Disposals of trading stock at below market value
GC 2
Disposals of timber rights or standing timber
GC 3
Disposals by life insurers
GC 3B
Disposals of emissions units
GC 4
Disposals and acquisitions of FIF attributing interests
GC 4B
Disposals of ETS units at below market value
[Repealed]
Leases
GC 5
Leases for inadequate rent
Transfer pricing arrangements
GC 6
Purpose and application of rules and nature of arrangements
GC 7
Excess amount payable by person
GC 8
Insufficient amount receivable by person
GC 9
Compensating arrangement: person paying less than arm’s length amount
GC 10
Compensating arrangement: person receiving more than arm’s length amount
GC 11
Applications for matching treatment
GC 12
Effect on person’s withholding obligations
GC 13
Calculation of arm’s length amounts
GC 14
Definitions for sections GC 6 to GC 13
Cross-border related borrowing
GC 15
Aspects of loan adjusted for application of sections
GC 16
Credit rating of borrower: other than insuring or lending person
GC 17
Credit rating of borrower: insuring or lending person
GC 18
Loan features disregarded by rules for transfer pricing arrangements
GC 19
Sections GC 15 to GC 18 and financial arrangements entered before application period
Purchase price allocation
GC 20
Effect of purchase price allocation agreement
GC 21
Purchase price allocation required: no agreement
Subpart GZ—Terminating provisions
GZ 1
Limitation on section GB 20: petroleum and mineral mining arrangements
GZ 2
Arrangements involving cancellation of conduit tax relief credits
[Repealed]
GZ 3
Donations of trading stock for relief of Canterbury earthquakes
GZ 4
Disposals of trading stock to donee organisations or public authorities
GZ 5
Disposals of trading stock to non-associates
Part H Taxation of certain entities
Subpart HA—Qualifying companies (QC)
Introductory provisions
HA 1
What this subpart does
HA 2
Meaning of qualifying company
HA 3
Meaning of loss-attributing qualifying company
[Repealed]
HA 4
Conditions applying
Qualifying company status
HA 5
Elections to become qualifying company
HA 6
Corporate requirements
HA 7
Shareholding requirements
HA 7B
Grandparenting requirement
HA 8
Shareholders’ personal liability
HA 8B
No CFC income interests or FIF direct income interests of 10% or more
HA 9
Limit on foreign non-dividend income
HA 10
Nature of LAQC shares
[Repealed]
HA 11
When requirements no longer met: qualifying companies
HA 11B
When requirements no longer met: LAQCs
[Repealed]
HA 12
Avoidance arrangements
[Repealed]
Treatment of profits, dividends, and tax losses
HA 13
Qualifying companies’ distributions
HA 14
Dividends paid by qualifying companies
HA 15
Fully imputed distributions
HA 16
Dividends paid by qualifying companies to trustee shareholders
HA 17
Dividends derived by qualifying companies
HA 18
Treatment of dividends when qualifying company status ends
HA 19
Credit accounts and dividend statements
HA 20
Attribution of tax losses
[Repealed]
HA 21
Loss balances not carried forward
HA 22
Group companies using tax losses
HA 23
Treatment of tax losses on amalgamation
Special tax matters for loss-attributing qualifying companies
HA 24
Treatment of tax losses other than certain foreign losses
[Repealed]
HA 25
Treatment of certain foreign losses
[Repealed]
HA 26
Attribution when balance dates differ
[Repealed]
HA 27
Attribution when loss results in reduction in value of shares
[Repealed]
Elections: qualifying companies
HA 28
Elections by trustee shareholders
HA 29
Elections by majority shareholders
HA 30
When elections take effect
HA 31
Revocation of directors’ elections
HA 32
Revocation of shareholders’ elections: by notice
HA 33
Revocation of shareholders’ elections: by event
HA 33B
Transitional rules for look-through companies, partnerships, and sole traderships
HA 34
Period of grace following death of shareholder
HA 35
Period of grace following revocation of election
HA 36
Period of grace following revocation of joint election
HA 37
Period of grace for new shareholder
Elections: loss-attributing qualifying companies
HA 38
Elections by directors and shareholders required
[Repealed]
HA 39
Revocation of elections
[Repealed]
Qualifying company election tax
HA 40
Liability for qualifying company election tax
HA 41
Calculating qualifying company election tax
HA 42
Paying qualifying company election tax
Effective interests in qualifying companies
HA 43
Meaning of effective interest
HA 44
Measuring effective interests
Subpart HB—Look-through companies
HB 1
Look-through companies are transparent
HB 2
Previous income and expenditure or loss
HB 3
Loss balances extinguished
HB 4
General provisions relating to disposals
HB 5
Disposal of owner’s interests
HB 6
Disposal of trading stock
HB 7
Disposal of depreciable property
HB 8
Disposal of financial arrangements and certain excepted financial arrangements
HB 9
Disposal of short-term agreements for sale and purchase
HB 10
Disposal of livestock
HB 11
Limitation on deductions by persons with interests in look-through companies
HB 12
Limitation on deductions by owners of look-through companies: carry-forward
HB 13
LTC elections
Subpart HC—Trusts
Introductory provisions
HC 1
What this subpart does
HC 2
Obligations of joint trustees for calculating income and providing returns
HC 3
Multiple settlements
HC 4
Corpus of trust
Trust income
HC 5
Amounts derived by trustees
HC 6
Beneficiary income
HC 7
Trustee income
HC 8
Amounts received after person’s death
Classification of trusts
HC 9
Classifying trusts
HC 10
Complying trusts
HC 11
Foreign trusts
HC 12
Non-complying trusts
HC 13
Charitable trusts
Distributions from trusts
HC 14
Distributions from trusts
HC 15
Taxable distributions from non-complying and foreign trusts
HC 16
Ordering rule for distributions from non-complying and foreign trusts
Tax treatment of amounts that beneficiaries derive from trusts
HC 17
Amounts derived as beneficiary income
HC 18
Taxable distributions from foreign trusts
HC 19
Taxable distributions from non-complying trusts
HC 20
Distributions from complying trusts
HC 21
Distributions from community trusts
HC 22
Use of tax losses to reduce taxable distributions from non-complying trusts
HC 23
Temporary absences of beneficiaries
Tax treatment of trustee income
HC 24
Trustees’ obligations
HC 25
Foreign-sourced amounts: non-resident trustees
HC 26
Foreign-sourced amounts: resident trustees
Settlors and their liabilities
HC 27
Who is a settlor?
HC 28
Activities treated as those of settlor
HC 29
Settlors’ liability to income tax
Treatment of transition situations
HC 30
Treatment of foreign trusts when settlor becomes resident
Valuation of property, trading stock, and financial arrangements
HC 31
When existing trusts come into tax base
HC 31B
Value transfer by deferral, or non-exercise, of right to demand payment
Rate and payment of income tax
HC 32
Liability of trustee as agent
HC 33
Choosing to satisfy income tax liability of trustee
HC 34
Taxable distributions from non-complying trusts
HC 35
Beneficiary income of minors
HC 36
Trusts and minor beneficiary rule
HC 37
Testamentary trusts and minor beneficiary rule
Subpart HD—Agents
Introductory provisions
HD 1
What this subpart does
HD 2
Joint liability of principal and agent for tax obligations
HD 3
Agents’ duties and liabilities
HD 4
Treatment of principals
HD 5
Matters between principals and agents
HD 6
When relationship effectively that of principal and agent
HD 7
Rate and amount of tax
Particular cases
HD 8
Circumstances giving rise to agency
HD 9
Guardians
HD 10
Mortgagees in possession
HD 11
Nominated companies
HD 12
Trusts
HD 13
Unit trusts
HD 13B
AIM companies
HD 14
Companies issuing debentures
HD 15
Asset stripping of companies
HD 16
Non-resident general insurers
HD 17
Agent paying premiums to residents of Switzerland
HD 17B
Lloyd’s of London: agents for life insurance
Absentees
HD 18
Agency in relation to absentees generally
HD 19
Persons receiving absentees’ income
HD 20
Persons carrying on business for absentees
HD 20B
General partners and partners carrying on with or managing business involving absentees
HD 21
Companies
HD 22
Banking companies
HD 23
Trustees of group investment funds
HD 24
Shipping businesses
HD 25
Persons remitting amounts outside New Zealand
Non-residents
HD 26
Agency in relation to non-residents generally
HD 27
Employers
HD 28
Government pensions and payments under superannuation schemes
HD 29
Persons acquiring goods from overseas
HD 30
Members of wholly-owned large multinational group
Subpart HE—Mutual associations
HE 1
Income and deductions of mutual associations
HE 2
Classes of mutual transaction
HE 3
Association rebates
HE 4
Apportionment when transactions with members and non-members
HE 5
Association rebates paid by shares or credit
Subpart HF—Maori authorities
Introductory provisions
HF 1
Maori authorities and the Maori authority rules
HF 2
Who is eligible to be a Maori authority?
HF 3
Applying provisions to Maori authorities
Maori authority distributions
HF 4
What constitutes a Maori authority distribution?
HF 5
Notional distributions of co-operative companies
HF 6
Tax treatment of Maori authority distributions
HF 7
Taxable Maori authority distributions
HF 8
Proportional allocation
Changing status
Table H1Consequences of change in entity status for purposes of Maori authority rules
HF 9
Treatment of companies and trusts that choose to apply this subpart
HF 10
Market value calculations
HF 11
Choosing to become Maori authority
Subpart HG—Joint venturers, partners, and partnerships
Joint venturers
HG 1
Joint venturers
Partners and partnerships
HG 2
Partnerships are transparent
HG 3
General provisions relating to disposals
HG 4
Disposal upon final dissolution
HG 5
Disposal of partner’s interests
HG 6
Disposal of trading stock
HG 7
Disposal of depreciable property
HG 8
Disposal of financial arrangements and certain excepted financial arrangements
HG 9
Disposal of short-term agreements for sale and purchase
HG 10
Disposal of livestock
HG 11
Limitation on deductions by partners in limited partnerships
HG 12
Limitation on deductions by partners in limited partnerships: carry-forward
Subpart HL—Portfolio investment entities
[Repealed]
Introductory provisions
HL 1
Intended effect on portfolio tax rate entities and investors
[Repealed]
HL 2
Scheme of subpart
[Repealed]
Eligibility requirements: portfolio investment entities and foreign investment vehicles
HL 3
Eligibility requirements for entities
[Repealed]
HL 4
Effect of failure to meet eligibility requirements for entities
[Repealed]
HL 5
Foreign investment vehicles
[Repealed]
HL 5B
Meaning of investor and portfolio investor class
[Repealed]
HL 5C
Income interest requirement
[Repealed]
HL 6
Investor membership requirement
[Repealed]
HL 7
Investor return adjustment requirement: portfolio tax rate entity
[Repealed]
HL 8
Imputation credit distribution requirement: portfolio listed company
[Repealed]
HL 9
Investor interest size requirement
[Repealed]
HL 10
Further eligibility requirements relating to investments
[Repealed]
Becoming and ceasing to be portfolio investment entity
HL 11
Election to become portfolio investment entity and cancellation of election
[Repealed]
HL 12
Unlisted company choosing to become portfolio listed company
[Repealed]
HL 13
Becoming portfolio investment entity
[Repealed]
HL 14
Tax consequences from transition
[Repealed]
HL 15
Ceasing to be portfolio investment entity
[Repealed]
Periods relevant to calculation of portfolio entity tax liability
HL 16
Portfolio allocation period and portfolio calculation period
[Repealed]
Allocation of income in some cases
HL 17
Treatment of income from interest when entitlement conditional or lacking
[Repealed]
HL 18
Certain new investors treated as part of existing portfolio investor class
[Repealed]
Calculating portfolio entity tax liability
HL 19
Portfolio class net income and portfolio class net loss for portfolio allocation period
[Repealed]
HL 19B
Treatment of certain provisions made by portfolio tax rate entity
[Repealed]
HL 20
Portfolio class taxable income and portfolio class taxable loss for portfolio allocation period
[Repealed]
HL 21
Portfolio entity tax liability and tax credits of portfolio tax rate entity for period
[Repealed]
Payment by portfolio tax rate entity of tax for tax year
HL 22
Payments of tax by portfolio tax rate entity making no election
[Repealed]
HL 23
Payments of tax by portfolio tax rate entity choosing to pay provisional tax
[Repealed]
HL 24
Payments of tax by portfolio tax rate entity choosing to make payments when investor leaves
[Repealed]
HL 25
Optional payments of tax by portfolio tax rate entities
[Repealed]
Results for investors
HL 26
Portfolio investor allocated income and portfolio investor allocated loss
[Repealed]
HL 27
Treatment of portfolio investor allocated loss for zero-rated portfolio investors and investors with portfolio investor exit period
[Repealed]
Tax credits for entity
HL 28
Treatment of portfolio investor allocated loss for other investors
[Repealed]
HL 29
Credits received by portfolio tax rate entity or portfolio investor proxy
[Repealed]
Treatment of losses for entity
HL 30
Portfolio entity formation loss
[Repealed]
HL 31
Portfolio class taxable income and portfolio class taxable loss for tax year
[Repealed]
HL 32
Treatment of portfolio class taxable loss and portfolio class land loss for tax year
[Repealed]
Portfolio investor proxies
HL 33
Portfolio investor proxies
[Repealed]
Subpart HM—Portfolio investment entities
Introductory provisions
HM 1
Outline of subpart and relationship with other Parts
HM 2
What is a portfolio investment entity?
HM 3
Foreign PIE equivalents
HM 4
Who is an investor?
HM 5
What is an investor class?
HM 6
Intended effects for multi-rate PIEs and investors
HM 6B
Optional look-through rules for certain PIEs
Entry rules
HM 7
Requirements
Requirements
HM 8
Residence in New Zealand
HM 9
Collective schemes
HM 10
Exclusion: life insurance business
HM 11
Investment types
HM 12
Income types
HM 13
Maximum shareholdings in investments
HM 14
Minimum number of investors
HM 15
Maximum investor interests
HM 16
Associates combined
HM 17
Same rights to all investment proceeds
HM 18
Requirements for listed PIEs: unlisted companies
HM 19
Requirements for listed PIEs: fully crediting distributions
HM 19B
Modified rules for foreign investment zero-rate PIEs
HM 19C
Modified rules for foreign investment variable-rate PIEs
HM 20
Re-entering as PIE: 5-year rule
Exceptions
HM 21
Exceptions for certain investors
HM 22
Exceptions for certain funds
HM 23
Exceptions for foreign PIE equivalents
Exit rules
HM 24
Immediate loss of PIE status
HM 25
When entity no longer meets investment or investor requirements
HM 26
Starting life insurance business
HM 27
When multi-rate PIE no longer meets investor interest adjustment requirements
HM 28
When listed PIE no longer meets requirements
HM 29
Choosing to cancel status
HM 30
When foreign PIE equivalent no longer meets requirements
Rules for multi-rate PIEs
Introductory provisions
HM 31
Rules for multi-rate PIEs
HM 32
Rules for and treatment of investors in multi-rate PIEs
HM 33
Proxies for PIE investors
Attributing income to investors
HM 34
Attribution periods
HM 35
Determining net amounts and taxable amounts
HM 35B
Treatment of certain provisions made by multi-rate PIEs
HM 35C
Determining amounts for notified foreign investors
HM 36
Calculating amounts attributed to investors
HM 36B
Calculating PIE schedular income adjustments for natural person investors
HM 37
When income cannot be attributed
HM 38
When superannuation fund investor has conditional entitlement
HM 39
New investors in existing investor classes
HM 40
Deductions for attributed PIE losses for zero-rated and exiting investors equal to amount attributed
Calculating and paying tax liability
HM 41
Options for calculation and payment of tax
HM 42
Exit calculation option
HM 42B
Part-year tax calculations for PIEs under the exit calculation option for the 2010–11 tax year
HM 43
Quarterly calculation option
HM 44
Provisional tax calculation option
HM 44B
NRWT calculation option
HM 45
Voluntary payments
HM 46
Calculation process
HM 47
Calculation of tax liability or tax credit of multi-rate PIEs
Adjusting investors’ interests
HM 48
Adjustments to investor interests or to distributions
Using tax credits
HM 49
Tax credits: when sections HM 50 to HM 55 apply
HM 50
Attributing credits to investors
HM 51
Use of foreign tax credits by PIEs
HM 52
Use of foreign tax credits by zero-rated and certain exiting investors
HM 53
Use of tax credits other than foreign tax credits by PIEs
HM 54
Use of tax credits other than foreign tax credits by investors
HM 55
Tax credits for losses
Special rules for foreign investment PIEs
HM 55C
Modified source rules
HM 55D
Requirements for investors in foreign investment PIEs
HM 55E
Changes in status of investors in foreign investment PIEs
HM 55F
Treatment of income attributed to notified foreign investors
HM 55FB
Notified foreign investors and tax credits for supplementary dividends
HM 55G
Allowable amounts and thresholds for income with New Zealand source
HM 55H
Treatment when certain requirements for foreign investment PIEs not met
Prescribed and notified rates for investors in multi-rate PIEs
HM 56
Prescribed investor rates: schedular rates
HM 57
Prescribed investor rates for certain investors: 0%
HM 57B
Prescribed investor rates for new residents
HM 58
Transition of rate for certain investors
HM 59
Prescribed investor rates for certain investors: 0%
[Repealed]
HM 60
Notified investor rates
HM 60B
Investor rates provided by Commissioner
HM 61
Certain exiting investors zero-rated
Exit levels and periods
HM 62
Exit levels for investors
HM 63
Exit periods
Treatment of losses by PIEs
Losses of certain multi-rate PIEs
HM 64
Use of investor classes’ losses
HM 65
Use of land losses of investor classes
Formation losses
HM 66
Formation losses carried forward to tax year
HM 67
Formation losses carried forward to first quarter
HM 68
When formation losses carried forward are less than 5% of formation investment value
HM 69
When formation losses carried forward are 5% or more of formation investment value: 3-year spread
HM 70
Maximum amount of formation losses allocated by multi-rate PIEs to investor classes
Elections and consequences
HM 71
Choosing to become PIE
HM 71B
Choosing to become foreign investment PIE
HM 72
When elections take effect
HM 73
Transition: provisional tax
HM 74
Transition: entities with non-standard income years
HM 75
Transition: treatment of shares held in certain companies
HM 76
Transition: FDPA companies
[Repealed]
Subpart HR—Other entities
Partnerships and joint ventures
HR 1
Partnerships and joint ventures
[Repealed]
Funds
HR 2
Group investment funds
HR 3
Definitions for section HR 2: group investment funds
HR 4
Government Superannuation Fund
HR 4B
Activities relating to New Zealand Superannuation Fund and Venture Capital Fund
Airport operators
HR 5
Airport operators: general
HR 6
Airport operator’s assets
HR 7
Meaning of airport operator’s activities
Transitional residents
HR 8
Transitional residents
Debt funding special purpose vehicles
HR 9
Debt funding special purpose vehicles are transparent if election made by originator
HR 9BA
Elections to treat debt funding special purpose vehicles as transparent
HR 9B
Bankruptcy-remote property during application of section HR 9
HR 10
What happens when vehicle stops being transparent debt funding special purpose vehicle?
Non-exempt charities: cessation of tax-exempt status
HR 11
Non-exempt charities: initial tax base
HR 12
Non-exempt charities: treatment of tax-exempt accumulations
Lloyd’s of London: life insurance
HR 13
Lloyd’s of London: life insurance
Subpart HZ—Terminating provisions
HZ 1
Distributions from trusts of pre-1989 tax reserves
HZ 2
Trusts that may become complying trusts
HZ 3
Special partnerships: transition into limited partnerships and limited partnerships deduction rules
HZ 4
Overseas limited partnerships: transition into limited partnerships deduction rules
HZ 4B
Qualifying companies: transition into partnership
HZ 4C
Qualifying companies: transition into look-through companies
HZ 4D
Qualifying companies: transition into sole traderships
HZ 4E
Transition out of LTC regime for Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017
HZ 5
Transitional provisions for PIE rules
HZ 6
Saving of binding rules relating to portfolio investment entities
HZ 7
Saving of binding rulings relating to settlements on trusts
HZ 8
Retrospective transitional provision for market valuation under section HB 4
HZ 9
Elections to treat existing debt funding special purpose vehicles as transparent
HZ 10
What happens when election is made under section HZ 9?
HZ 11
Protection from non-compliance: Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
Part I Treatment of tax losses
Subpart IA—General rules for tax losses
IA 1
What this subpart does
IA 2
Tax losses
IA 3
Using tax losses in tax year
IA 3B
Tax losses and procedures under Insolvency Act 2006
IA 4
Using loss balances carried forward to tax year
IA 5
Restrictions on companies’ loss balances carried forward: continuity of ownership
IA 6
Restrictions on companies grouping tax losses
IA 7
Restrictions relating to ring-fenced tax losses
IA 8
Restrictions relating to schedular income
IA 9
Ordering rules
IA 10
Amended assessments
Subpart IB—Carrying forward companies’ loss balances: continuity of business activities
IB 1
Purpose
IB 2
Meaning of ownership continuity breach
IB 2B
When subsequent ownership continuity breach regarded as occurring
IB 3
When tax loss components of companies carried forward despite ownership continuity breach
IB 4
Business continuity period
IB 5
When group companies treated as single company
Subpart IC—Grouping tax losses
Introductory provisions
IC 1
Company A making tax loss available to company B
IC 2
Threshold levels for grouping tax losses in tax year
IC 3
Common ownership: group of companies
IC 4
Common ownership: wholly-owned groups of companies
Requirements and methods
IC 5
Company B using company A’s tax loss
IC 6
Common ownership for period
IC 7
Place of incorporation or carrying on business
IC 8
Limitations on amounts used
IC 9
Date for payment and notice to Commissioner
IC 10
When companies have different balance dates
IC 11
Reduction of amounts used by companies
IC 12
Bad debts or decline in value of shares
IC 13
Variation of requirements for development companies in Niue
Subpart ID—Use of tax losses by consolidated groups
ID 1
Treatment of tax losses by consolidated groups
ID 2
Pre-consolidation losses: general treatment
ID 3
Pre-consolidation losses: use by group companies
ID 4
Pre-consolidation losses on entry: part-year rule
ID 5
Pre-consolidation losses on exit: part-year rule
Subpart IE—Treatment of tax losses on amalgamation of companies
IE 1
When this subpart applies
IE 2
Treatment of tax losses by amalgamating company
IE 3
Treatment of tax losses by amalgamated company
IE 4
Group companies’ treatment of tax losses on amalgamation
IE 5
Applying the continuity provisions when companies amalgamate
Subpart IP—Meeting requirements for part-years
Introductory provisions
IP 1
When this subpart applies
IP 2
Group companies’ common span
Tax loss components carried forward
IP 3
Ownership continuity breach: tax loss components of companies carried forward
IP 3B
Business continuity breach: tax loss components of companies carried forward
Grouping part-year tax losses
IP 4
Breach in income year in which tax loss component arises
IP 5
Breach in tax year in which loss balance is grouped
Statements and notices
IP 6
Financial statements required
IP 7
Notices required
Subpart IQ—Attributed controlled foreign company net losses and foreign investment fund net losses
IQ 1A
When this subpart applies
IQ 1
General treatment
IQ 1B
Losses carried forward to tax year
IQ 2
Ring-fencing cap on attributed CFC net losses
IQ 2B
Effect of attributed CFC net loss and FIF net loss from before first affected year
IQ 2C
Effect of FIF net loss if attributed FIF income method not available
IQ 3
Ring-fencing cap on FIF net losses
IQ 4
Group companies using attributed CFC net losses
IQ 5
Group companies using FIF net losses
[Repealed]
IQ 6
Pre-consolidation losses: general treatment
IQ 7
When group membership lacking in loss period
IQ 8
When group membership lacking in tax year of use
IQ 9
When attributed CFC net loss becomes FIF net loss
Subpart IS—Mineral miners’ and petroleum miners’ tax losses
IS 1
General treatment of mineral miners’ net losses
IS 2
Treatment of net losses resulting from certain expenditure
IS 3
Holding companies’ tax losses
[Repealed]
IS 4
Adjustments in certain circumstances
[Repealed]
IS 5
Petroleum miners’ tax losses
[Repealed]
IS 6
When company stops being mineral miner
Subpart IT—Cancellation of life insurer’s losses
IT 1
Cancellation of life insurer’s policyholder net losses
IT 2
Cancellation of life insurer’s tax loss when allowed into policyholder base
Subpart IV—Treatment of certain supplementary dividends
[Repealed]
IV 1
Supplementary dividend holding companies
[Repealed]
Subpart IW—Use of tax losses to pay shortfall penalties
IW 1
Shortfall penalties
Subpart IZ—Terminating provisions
IZ 1
Use of specified activity net losses
[Repealed]
IZ 2
Petroleum mining companies: treatment of payments from shareholders
[Repealed]
IZ 3
Petroleum mining companies: use of loss balances
[Repealed]
IZ 4
Tax losses for tax years before 1977–78 tax year
IZ 5
Companies’ tax losses for tax years before 1991–92 tax year
IZ 6
Companies’ tax losses for 1990–91 and 1991–92 tax years
IZ 7
Grouping tax losses for tax years before 1981–82 and between 1981–82 and 1991–92
IZ 7B
Grouping tax losses for commonality periods starting before 15 March 2017 for tax years after 1990–91
IZ 8
Election to use net loss for 2019–20 or 2020–21 year as tax loss in preceding year
Part L Tax credits and other credits
Subpart LA—General rules for tax credits
LA 1
What this Part does
LA 2
Satisfaction of income tax liability
LA 3
When total tax credit less than or equal to income tax liability
LA 4
When total tax credit more than income tax liability
LA 5
Treatment of remaining credits
LA 6
Remaining refundable credits: PAYE, RWT, and certain other items
LA 7
Remaining refundable credits: tax credits for social policy and other initiatives
LA 8
Remaining refundable credits: non-resident withholding tax
LA 8B
General rules particular to life insurers
LA 9
Use of tax credits
LA 10
Meaning of tax credit
Subpart LB—Tax credits for payments, deductions, and family payments
LB 1
Tax credits for PAYE income payments
LB 1B
Treatment of tax credits of certain companies with shareholders who are employees
LB 2
Tax credits for provisional tax payments
LB 3
Tax credits for resident withholding tax
LB 4
Tax credits for families
LB 4B
Tax credit for R&D tax losses
LB 5
Tax credits for non-resident withholding tax
LB 6
Tax credits for RSCT
LB 6B
Tax credits for RLWT
LB 7
Tax credits related to personal service rehabilitation payments: providers
LB 8
Tax credits related to personal service rehabilitation payments: payers
Subpart LC—Tax credits for natural persons
Tax credits for persons on low incomes
LC 1
When net income under low income amount
[Repealed]
LC 2
When net income in low income abatement range
[Repealed]
Tax credits for children
LC 3
Child’s income
[Repealed]
Tax credits for transitional circumstances
LC 4
Tax credits for transitional circumstances
[Repealed]
LC 5
Meaning of engaged in full-time work
[Repealed]
Tax credits for housekeeping
LC 6
Tax credits for housekeeping
[Repealed]
LC 7
Meaning of housekeeper
[Repealed]
LC 8
Some definitions
[Repealed]
Tax credits for absentees
LC 9
Tax credits for absentees
[Repealed]
Adjustments to certain tax credits
LC 10
Adjustment for change in return date
[Repealed]
LC 11
Adjustment when person is non-resident for part of tax year
[Repealed]
LC 12
Assessment when person is non-resident
[Repealed]
Tax credits for independent earners
LC 13
Tax credits for independent earners
Subpart LD—Tax credits for gifts and donations
Charitable and other public benefit gifts
LD 1
Tax credits for charitable or other public benefit gifts
LD 2
Exclusions
LD 3
Meaning of charitable or other public benefit gift
Payroll donations
LD 4
Tax credits for payroll donations
LD 5
Calculating amount of tax credit and filing particulars
LD 6
When donation is paid to ineligible recipient
LD 7
When donation returned to person
LD 8
Meaning and ranking of payroll donation
Subpart LE—Tax credits for imputation credits
LE 1
Tax credits for imputation credits
LE 2
Use of remaining credits by companies and trustees
LE 2B
Use of remaining credits by life insurer on policyholder base
LE 3
Use of remaining credits by others
LE 4
Trustees for minor beneficiaries
LE 5
Beneficiaries of trusts
LE 6
Partners in partnerships
LE 7
Credit transfer notices
LE 7B
Credit of RSCT for imputation credit
LE 8
Application of imputation ratio
LE 8B
Dividends from certain FIF interests
LE 9
Application of combined imputation and FDP ratio
[Repealed]
LE 10
When income tax unpaid
LE 11
Evidential requirements
Subpart LF—Tax credits for foreign dividend payment (FDP) credits
[Repealed]
LF 1
Tax credits for FDP credits
[Repealed]
LF 2
Trustees for minor beneficiaries
[Repealed]
LF 3
Beneficiaries of trusts
[Repealed]
LF 4
Partners in partnerships
[Repealed]
LF 5
Credit transfer notices
[Repealed]
LF 6
Application of FDP ratio
[Repealed]
LF 7
Application of combined imputation and FDP ratio
[Repealed]
LF 8
Credits for persons who are non-resident or who receive exempt income
[Repealed]
LF 9
When income tax unpaid
[Repealed]
LF 10
Evidential requirements
[Repealed]
Subpart LH—Tax credits for expenditure on research and development
[Repealed]
LH 1
Who this subpart applies to
[Repealed]
LH 2
Tax credits relating to expenditure on research and development
[Repealed]
LH 3
Requirements
[Repealed]
LH 4
Calculation of amount of credit
[Repealed]
LH 5
Adjustments to eligible expenditure
[Repealed]
LH 6
Research and development activities outside New Zealand
[Repealed]
LH 7
Research and development activities and related terms
[Repealed]
LH 8
Orders in Council
[Repealed]
LH 9
Internal software development: general
[Repealed]
LH 10
Internal software development: no associated internal software developer
[Repealed]
LH 11
Internal software development: associated internal software developer with same income year
[Repealed]
LH 12
Internal software development: associated internal software developer with different income year
[Repealed]
LH 13
Internal software development: limit
[Repealed]
LH 14
Treatment of depreciation loss for certain depreciable property
[Repealed]
LH 14B
Recovery of overpaid tax credit
[Repealed]
LH 15
Listed research providers
[Repealed]
LH 16
Industry research co-operatives
[Repealed]
LH 17
Some definitions
[Repealed]
Subpart LJ—Tax credits for foreign income tax
LJ 1
What this subpart does
LJ 2
Tax credits for foreign income tax
LJ 3
Meaning of foreign income tax
LJ 4
Meaning of segment of foreign-sourced income
LJ 5
Calculation of New Zealand tax
LJ 6
Taxable distributions and NRWT rules
LJ 7
Repaid foreign tax: effect on income tax liability
LJ 8
Repaid foreign tax: effect on FDP liability
[Repealed]
Subpart LK—Tax credits relating to attributed controlled foreign company income
Amounts of credits
LK 1
Tax credits relating to attributed CFC income
LK 2
Calculation of amount of credit
LK 3
Currency conversion
Use of credits in later tax years
LK 4
Use of remaining credits
LK 5
Companies’ credits carried forward
LK 5B
Credits from tax year before first affected year
LK 6
Use of credits by group companies
Treatment of taxable distributions
LK 7
Taxable distributions and NRWT rules
Consolidated companies
LK 8
Tax credits of consolidated companies
LK 9
Use of company’s credits carried forward
LK 10
When group membership lacking in tax year in which credit arises
LK 11
When group membership lacking in tax year in which credit used
Amalgamations of companies
LK 12
Treatment of credits when companies amalgamate
LK 13
Use of credits by amalgamated company
LK 14
Use by amalgamated company of credits carried forward
LK 15
Use of amalgamating company’s credits
Subpart LL—Underlying foreign tax credits (UFTC)
[Repealed]
LL 1
What this subpart does
[Repealed]
LL 2
Tax credits for underlying foreign tax
[Repealed]
LL 3
Meaning of grey list dividend
[Repealed]
LL 4
Tracking accounts
[Repealed]
LL 5
Meaning of foreign dividend company net earnings
[Repealed]
LL 6
Foreign dividend company lower tier UFTCs
[Repealed]
LL 7
Conduit financing arrangements
[Repealed]
LL 8
Currency conversion
[Repealed]
LL 9
Some definitions
[Repealed]
Subpart LO—Tax credits for Maori authority credits
LO 1
Tax credits for Maori authority credits
LO 2
Beneficiaries of trusts
LO 2B
Credit of RSCT for Maori authority credit
LO 3
Application of Maori authority distribution ratio
LO 4
When income tax unpaid
LO 5
Evidential requirements
Subpart LP—Tax credits for supplementary dividends
Introductory provision
LP 1
What this subpart does
Use of credits
LP 2
Tax credits for supplementary dividends
LP 3
Use of remaining credits
LP 4
Continuity rules for carrying credits forward
LP 5
Application of benchmark dividend rules and imputation credit ratio
LP 6
Deriving supplementary dividend and breach of terms of trust
Supplementary dividend holding companies
LP 7
Requirements for supplementary dividend holding companies
[Repealed]
LP 8
Relationship with exempt income rules
[Repealed]
LP 9
Relationship with RWT rules
[Repealed]
LP 10
Limitation on deductions
[Repealed]
Subpart LQ—Tax credits of conduit tax relief companies
[Repealed]
LQ 1
Tax credits of CTR companies
[Repealed]
LQ 2
Limitation on amount of credit
[Repealed]
LQ 3
Determining percentage of non-resident shareholders
[Repealed]
LQ 4
Date for determining percentage of non-resident shareholders
[Repealed]
LQ 5
CTR additional dividends
[Repealed]
Subpart LR—Tax credits for policyholder income
[Repealed]
LR 1
Tax credits for policyholder income
[Repealed]
Subpart LS—Tax credits for multi-rate PIEs and investors
LS 1
Tax credits for multi-rate PIEs
LS 2
Tax credits for investors in multi-rate PIEs
LS 3
Tax credits for zero-rated investors
LS 4
Tax credits for certain exiting investors
Subpart LT—Tax credits for petroleum miners
LT 1
Tax credits for petroleum miners
LT 2
Petroleum mining operations outside New Zealand
Subpart LU—Tax credits for mineral miners
LU 1
Tax credits for mineral miners
Subpart LY—Research and development tax credits
LY 1
Research and development tax credits
LY 2
Key terms
LY 3
When this subpart applies
LY 4
Calculation of tax credit
LY 5
Eligible research and development expenditure
LY 6
Contracted research and development expenditure
LY 7
Foreign research and development expenditure
LY 8
Carry forward for remaining research and development tax credits
LY 9
Orders in Council
LY 10
Evaluation
Subpart LZ—Terminating provisions
Underlying foreign tax credits
LZ 1
Low tax jurisdiction companies
[Repealed]
Credits for certain non-resident investment companies
LZ 2
Certain development projects
[Repealed]
LZ 3
Interest derived from development investments
[Repealed]
LZ 4
Dividends derived from development investments
[Repealed]
LZ 5
Some definitions
[Repealed]
Credits for interest on home vendor mortgages
LZ 6
Interest on home vendor mortgages
LZ 7
Maximum amount of credit under section LZ 6
LZ 8
Meaning of home vendor mortgage
Credits for savings in special home ownership accounts
LZ 9
Savings in special home ownership accounts
[Repealed]
LZ 10
Maximum amount for 1 special home ownership account for 1 tax year
[Repealed]
LZ 11
Maximum amount for all special home ownership accounts for all tax years
[Repealed]
LZ 12
Meaning of increase in savings
[Repealed]
Research and development tax credits
LZ 13
Part-year override of section LY 3(2)(b)
LZ 14
Research and development tax credits’ refundability: option for 2019–20 income year
Part M Tax credits paid in cash
Subpart MA—General provisions
MA 1
What this Part does
MA 2
Relationship with core provisions
MA 3
Excluded income
MA 4
Calculation of amounts of credit producing negative amounts
MA 5
Advice from outside agencies
MA 6
Avoidance arrangements
MA 7
Meaning of full-time earner and earner for family scheme
MA 8
Some definitions for family scheme
Subpart MB—Adjustment of net income for family scheme
MB 1
Adjustments for calculation of family scheme income
MB 2
Adjustment for period that is less or more than 1 year
MB 3
When person carries on 1 or more businesses or investment activities
MB 4
Family scheme income of major shareholders in close companies
MB 5
Treatment of distributions from superannuation schemes
MB 6
Treatment of distributions from retirement savings schemes
MB 7
Family scheme income of settlor of trust
MB 7B
Family scheme income from employment benefits: employees not controlling shareholders
MB 8
Family scheme income from fringe benefits: controlling shareholders
MB 9
Family scheme income from deposits in main income equalisation accounts
[Repealed]
MB 10
Family scheme income from certain pensions and annuities
MB 11
Family scheme income from amounts derived by dependent children
MB 12
Family scheme income from non-residents’ foreign-sourced income
MB 12B
Family scheme income from trusts, not being beneficiary income, and where recipient not settlor
MB 13
Family scheme income from other payments
MB 14
Remission income of discharged bankrupt excluded
Subpart MC—Entitlements under family scheme
MC 1
What this subpart does
MC 2
Who qualifies for entitlements under family scheme?
MC 3
First requirement: person’s age
MC 4
Second requirement: principal care
MC 5
Third requirement: residence or entitlement to emergency benefit
MC 6
When person does not qualify
MC 7
When spouse or partner entitled under family scheme
MC 8
Continuing requirements
MC 9
Credits for person aged 18
MC 10
Principal caregiver
MC 11
Relationship periods and entitlement periods
Subpart MD—Abating WFF tax credits
Calculating amount of credit
MD 1
Abating WFF tax credit
MD 2
Calculating net contributions to credits
Family tax credit
MD 3
Calculation of family tax credit
In-work tax credit
MD 4
Entitlement to in-work tax credit
MD 5
First requirement: person’s age
MD 6
Second requirement: principal care
MD 7
Third requirement: residence
MD 8
Fourth requirement: person not receiving benefit
MD 9
Fifth requirement: earner
MD 10
Calculation of in-work tax credit
Parental tax credit
MD 11
Entitlement to parental tax credit
MD 12
Calculation of parental tax credit
MD 12B
Additional parental tax credit amount included in lump sum if 70-day period crosses 2 tax years
Credit abatement
MD 13
Calculation of family credit abatement
MD 14
Person receiving protected family tax credit
MD 15
Family scheme income for purposes of section MD 14
MD 16
Additional parental tax credit abatement amount for lump sum if 70-day period crosses 2 tax years
Subpart ME—Minimum family tax credit
ME 1
Minimum family tax credit
ME 2
Meaning of employment for this subpart
ME 3
Meaning of net family scheme income
Subpart MF—Payment of credits
MF 1
Application for payment of tax credit by instalment
MF 2
When person not entitled to payment by instalment
MF 3
Calculating amount of interim WFF tax credit
MF 4
Requirements for calculating instalment of tax credit
MF 4B
Calculation of instalments: 1 April 2008 to 30 September 2008
[Repealed]
MF 4C
Calculation of instalments: 1 October 2008 to 31 March 2009
[Repealed]
MF 4D
Calculation of instalments: 1 April 2010 to 30 September 2010
[Repealed]
MF 4E
Calculation of instalments: 1 October 2010 to 31 March 2011
[Repealed]
MF 4F
Calculation of instalments: 1 April 2018 to 30 June 2018
[Repealed]
MF 4G
Calculation of instalments: 1 July 2018 to 31 March 2019
[Repealed]
MF 4H
Calculation of instalments: 1 April 2021 to 30 June 2021
MF 4I
Calculation of instalments: 1 July 2021 to 31 March 2022
MF 5
Recovery of overpaid tax credit
MF 6
Overpayment or underpayment of tax credit
MF 7
Orders in Council
Subpart MG—Best Start tax credit
MG 1
Best Start tax credit entitlement
MG 2
Best Start tax credit
MG 3
Best Start credit abatement
MG 4
Person receiving protected Best Start tax credit
Subpart MK—Tax credits for KiwiSaver schemes and complying superannuation funds
MK 1
Tax credits for superannuation contributions
Tax credits for fund providers
MK 2
Eligibility requirements
MK 3
Payment of tax credits
MK 4
Amount of tax credit
MK 5
Crown contributions for members
MK 6
Credit given by fund providers
MK 7
Amounts paid in excess
MK 8
Treatment of tax credits on permanent emigration
Tax credits for employers
MK 9
Eligibility requirements
[Repealed]
MK 10
Amount of credit
[Repealed]
MK 11
When tax credits arise
[Repealed]
MK 12
Using tax credits
[Repealed]
MK 13
When short payment and unpaid compulsory employer contributions found after tax credit used
[Repealed]
MK 14
Employees opting out
[Repealed]
MK 15
Groups of persons
MK 16
Private domestic workers
Subpart ML—Tax credits for redundancy payments
[Repealed]
ML 1
What this subpart does
[Repealed]
ML 2
Tax credit for redundancy payments
[Repealed]
ML 3
Payment by Commissioner
[Repealed]
Subpart MX—Tax credits for R&D tax losses
MX 1
When subpart applies
MX 2
Corporate eligibility criteria
MX 3
Wage intensity criteria
MX 4
R&D loss tax credits
MX 5
Cancellation of R&D tax losses
MX 6
Deduction if increase in basic tax rate for company
MX 7
Reinstatement of R&D tax losses and R&D repayment tax
Subpart MZ—Terminating provisions
MZ 1
Entitlement to child tax credit
MZ 2
Calculation of child tax credit
MZ 3
Exclusions from determination of family scheme income
Part O Memorandum accounts
Subpart OA—General provisions
Introductory provisions
OA 1
What this Part does
OA 2
Memorandum accounts
OA 3
General rules for maintaining memorandum accounts
OA 4
Certain credits and debits arising only in group accounts
Credits and debits
OA 5
Credits
OA 6
Debits
Opening balances
OA 7
Opening balances of memorandum accounts
Shareholder continuity requirements
OA 8
Shareholder continuity requirements for memorandum accounts
Treatment of credits and debits on resident’s restricted amalgamation
General provision
OA 9
General treatment of credits and debits on resident’s restricted amalgamation
When companies amalgamate
OA 10
When credits or debits due to amalgamating company but not recorded
OA 11
FDP account on resident’s restricted amalgamation
[Repealed]
OA 12
CTR account on resident’s restricted amalgamation
[Repealed]
OA 13
Policyholder credit account on resident’s restricted amalgamation
[Repealed]
Amalgamation of companies in consolidated groups
OA 14
Continuity of shareholding when group companies amalgamate
OA 15
When credits or debits due to consolidated group but not recorded
OA 16
When FDP account ends on resident’s restricted amalgamation
[Repealed]
OA 17
When policyholder credit account ends on resident’s restricted amalgamation
[Repealed]
Maximum permitted ratios
OA 18
Calculation of maximum permitted ratios
Subpart OB—Imputation credit accounts (ICA)
Introductory provisions
OB 1
General rules for companies with imputation credit accounts
OB 2
Australian companies with imputation credit accounts
OB 3
Imputation credit accounts
OB 3B
General rule for life insurer’s policyholder base
Imputation credits
OB 4
ICA payment of tax or transfer to account
OB 5
ICA deposit in tax pooling account
OB 6
ICA transfer from tax pooling account
OB 7
ICA payment of further income tax
OB 7B
ICA payment of qualifying company election tax
OB 7C
ICA expenditure on research and development
[Repealed]
OB 8
ICA resident withholding tax withheld
OB 9
ICA dividend derived with imputation credit
OB 9B
ICA attributed PIE income with imputation credit
OB 9C
ICA credit for research and development tax credit
OB 10
ICA dividend derived with FDP credit
[Repealed]
OB 11
ICA payment of FDP
[Repealed]
OB 12
ICA transfer from FDP account
[Repealed]
OB 13
ICA transfer of debit balance on leaving wholly-owned group
OB 14
ICA payment of tax on leaving wholly-owned group
OB 15
ICA payment of tax on joining wholly-owned group
OB 16
ICA attribution for personal services
OB 17
ICA transfer from policyholder credit account
[Repealed]
OB 18
ICA transfer from ASC account
OB 19
ICA transfer to master fund
OB 19B
ICA transfer to loss-using group company
OB 20
ICA distribution with Maori authority credit
OB 21
ICA balance of Maori authority credit account
OB 22
ICA replacement payment to company under share-lending arrangement
OB 23
ICA credit transfer to company
OB 23B
ICA transfer from consolidated imputation group to departing member for unused tax payment
OB 24
ICA credit on resident’s restricted amalgamation
OB 25
ICA reversal of tax advantage arrangement
OB 26
ICA elimination of double debit
OB 27
ICA non-resident withholding tax withheld
OB 28
ICA payment of amount of tax for schedular payment
OB 29
ICA payment of schedular income tax
Imputation debits
OB 30
ICA payment of dividend
OB 31
ICA allocation of provisional tax
OB 32
ICA refund of tax or transfer from account
OB 33
ICA amount applied to pay other taxes
OB 34
ICA refund from tax pooling account
OB 35
ICA transfer within tax pooling account
OB 35B
ICA debit for transfer from tax pooling account for policyholder base liability
OB 36
ICA refund of FDP
[Repealed]
OB 37
ICA refund of tax credit
OB 38
ICA overpayment of FDP
[Repealed]
OB 39
ICA transfer for net foreign attributed income
[Repealed]
OB 40
ICA attribution for personal services
OB 41
ICA debit for loss of shareholder continuity
OB 42
ICA on-market cancellation
OB 43
ICA breach of imputation ratio
OB 44
ICA debit on leaving wholly-owned group
OB 45
ICA redemption debit
OB 46
ICA transfer from member fund
OB 46B
ICA transfer from group company to loss-using group company
OB 47
Debit for policyholder base imputation credits
OB 47B
Tax paid by recipients of R&D loss tax credits
OB 48
ICA credit balance when Maori authority credit account starts
OB 49
ICA replacement payment by company under share-lending arrangement
OB 50
ICA returning share transfer
OB 51
ICA credit transfer by company
OB 52
ICA transfer to consolidated imputation group
OB 53
ICA debit on resident’s restricted amalgamation
OB 54
ICA tax advantage arrangement
OB 55
ICA retrospective imputation credit
OB 56
ICA final balance
OB 57
ICA refund of NRWT
OB 58
ICA refund of amount of tax for schedular payment
OB 59
ICA refund of schedular income tax
Imputation credits attached to dividends
OB 60
Imputation credits attached to dividends
OB 61
ICA benchmark dividend rules
OB 62
Retrospective attachment of imputation credits
OB 63
Australian dividends
OB 64
Replacement payments
Further income tax
OB 65
Further income tax for ICA closing debit balance
OB 66
Further income tax when company stops being ICA company
OB 67
Reduction of further income tax
OB 68
Income tax paid satisfying liability for further income tax
OB 69
Further income tax paid satisfying liability for income tax
OB 70
Application of other provisions
Imputation additional tax
OB 71
Imputation additional tax on leaving group of companies
OB 72
Imputation additional tax on joining wholly-owned group
OB 72B
Limit on using entitlement to refund after joining wholly-owned group
Distributions of statutory producer boards and co-operative companies
OB 73
Statutory producer boards attaching imputation credits to cash distributions
OB 74
Statutory producer boards attaching imputation credits to notional distributions
OB 75
Statutory producer boards’ notional distributions that are dividends
OB 76
Statutory producer boards attaching FDP credits
[Repealed]
OB 77
When and how statutory producer board makes election
OB 78
Co-operative companies attaching imputation credits to cash distributions
OB 78B
Co-operative companies attaching imputation credits to cash distributions to groups
OB 79
Co-operative companies attaching imputation credits to notional distributions
OB 80
Co-operative companies’ notional distributions that are dividends
OB 81
Co-operative companies attaching FDP credits
[Repealed]
OB 82
When and how co-operative company makes election
Election by group company for transfer of imputation credits with transfer of tax loss
OB 83
Group companies transferring imputation credits with transfer of tax loss
OB 84
When and how group company transferring tax loss makes election
Tables of credits and debits in memorandum accounts
Table O1: imputation credits
Table O2: imputation debits
Subpart OC—Foreign dividend payment accounts (FDPA)
[Repealed]
Introductory provisions
OC 1
General rules for companies with FDP accounts
[Repealed]
OC 2
FDP accounts
[Repealed]
OC 2B
General rule for life insurer’s policyholder base
[Repealed]
OC 3
Choosing to become FDPA company
[Repealed]
OC 4
When company chooses to stop being FDPA company
[Repealed]
OC 5
When company emigrates
[Repealed]
FDP credits
OC 6
FDPA payment of FDP
[Repealed]
OC 7
FDPA dividend derived with FDP credit
[Repealed]
OC 8
FDPA payment of FDP for transfer from CTR account
[Repealed]
OC 9
FDPA transfer for net foreign attributed income
[Repealed]
OC 10
FDPA payment of FDP for conduit debit balance
[Repealed]
OC 11
FDPA credit transfer to company
[Repealed]
OC 12
FDPA reversal of tax advantage arrangement
[Repealed]
FDP debits
OC 13
FDPA payment of dividend
[Repealed]
OC 14
FDPA refund of FDP
[Repealed]
OC 15
FDPA overpayment of FDP
[Repealed]
OC 16
FDPA refund of tax credit
[Repealed]
OC 17
FDPA credit transfer by company
[Repealed]
OC 18
FDPA transfer to imputation credit account
[Repealed]
OC 19
FDPA transfer to CTR account
[Repealed]
OC 20
Debit for policyholder base FDP credits
[Repealed]
OC 21
FDPA transfer to group account
[Repealed]
OC 22
FDPA breach of FDP ratio
[Repealed]
OC 23
FDPA breach of FDP ratio by PCA company
[Repealed]
OC 24
FDPA debit for loss of shareholder continuity
[Repealed]
OC 25
FDPA tax advantage arrangement
[Repealed]
OC 26
FDPA final balance
[Repealed]
FDP credits attached to dividends
OC 27
FDP credits attached to dividends
[Repealed]
OC 28
FDPA benchmark dividend rules
[Repealed]
OC 29
FDP credits and imputation credits attached to dividends
[Repealed]
Further income tax
OC 30
Payment of further income tax for closing debit balance
[Repealed]
OC 31
Payment of further income tax when company no longer New Zealand resident
[Repealed]
OC 32
Reduction of further income tax
[Repealed]
OC 33
Income tax paid satisfying liability for further income tax
[Repealed]
OC 34
Further income tax paid satisfying liability for income tax
[Repealed]
Some definitions
OC 35
Meaning of FDP reference period
[Repealed]
OC 36
Meaning of maximum deficit debit
[Repealed]
OC 37
Meaning of policyholder FDP ratio
[Repealed]
OC 38
Meaning of reduced deficit debit
[Repealed]
OC 39
Meaning of shareholder FDP ratio
[Repealed]
Table O3: FDP credits
Table O4: FDP debits
Subpart OD—Conduit tax relief accounts (CTRA)
[Repealed]
Introductory provisions
OD 1
General rules for companies with CTR accounts
[Repealed]
OD 2
CTR accounts
[Repealed]
OD 3
Choosing to become CTR company
[Repealed]
OD 4
When company stops being CTR company
[Repealed]
CTR credits
OD 5
CTRA tax credit for conduit tax relief
[Repealed]
OD 6
CTRA transfer from FDP account
[Repealed]
OD 7
CTRA dividend derived with CTR credit
[Repealed]
OD 8
CTRA reduction of FDP
[Repealed]
OD 9
CTRA reversal of tax advantage arrangement
[Repealed]
CTR debits
OD 10
CTRA payment of dividend
[Repealed]
OD 11
CTRA transfer to FDP account
[Repealed]
OD 12
CTRA transfer to group account
[Repealed]
OD 13
CTRA adjustment for conduit tax relief
[Repealed]
OD 14
CTRA break in shareholding chain for group company
[Repealed]
OD 15
CTRA break in shareholding chain for company
[Repealed]
OD 16
CTRA increase in resident shareholding
[Repealed]
OD 17
CTRA breach of CTR ratio
[Repealed]
OD 18
CTRA tax advantage arrangement
[Repealed]
OD 19
CTRA final balance
[Repealed]
CTR credits attached to dividends
OD 20
CTR credits attached to dividends
[Repealed]
OD 21
CTRA benchmark dividend rules
[Repealed]
OD 22
CTR credits and imputation credits attached to dividends
[Repealed]
Payment of FDP and refunds
OD 23
FDP payable for CTR debits
[Repealed]
OD 24
FDP payable on resident’s restricted amalgamation
[Repealed]
OD 25
Refunds on transfers to CTR account
[Repealed]
Table O5: conduit tax relief credits
Table O6: conduit tax relief debits
Subpart OE—Branch equivalent tax accounts (BETA)
Introductory provision
OE 1
General rules for persons with branch equivalent tax accounts
Companies with branch equivalent tax accounts
Introductory provisions
OE 2
Branch equivalent tax accounts of companies
[Repealed]
OE 3
Choosing to become BETA company
[Repealed]
OE 4
When company stops being BETA company
[Repealed]
OE 5
Treatment of attributed CFC income and FIF income in this subpart
Branch equivalent tax credits
OE 6
BETA payment of income tax on foreign income
[Repealed]
OE 7
BETA payment of income tax
[Repealed]
OE 8
BETA unused amount of debit balance
[Repealed]
OE 9
BETA refund of FDP
[Repealed]
OE 10
BETA credit for loss of shareholder continuity
[Repealed]
OE 11
BETA final balance
[Repealed]
Treatment of debits from conduit relief
OE 11B
Company with debit balance, including debits from conduit relief, in some income years
[Repealed]
Branch equivalent tax debits
OE 12
BETA payment of FDP
[Repealed]
OE 13
BETA reduction in FDP
[Repealed]
OE 14
BETA refund of income tax
[Repealed]
OE 15
BETA debit for loss of shareholder continuity
[Repealed]
OE 16
BETA final balance
[Repealed]
Debit if credit balance at beginning of first affected income year
OE 16B
Company with credit balance at beginning of first affected income year
[Repealed]
Persons with branch equivalent tax accounts
Introductory provisions
OE 17
Person choosing to become BETA person
OE 18
When person stops being BETA person
Branch equivalent tax credits
OE 19
BETA person’s payment of income tax on foreign income
Branch equivalent tax debits
OE 20
BETA person’s payment of income tax
OE 21
BETA person’s refund of income tax
OE 22
BETA person’s final balance
Table O7: branch equivalent tax credits
Table O8: branch equivalent tax debits
Table O9: person's branch equivalent tax credits
Table O10: person's branch equivalent tax debits
Subpart OF—Available subscribed capital accounts (ASCA)
Introductory provisions
OF 1
General rules for companies with ASC accounts
OF 2
ASC accounts
OF 3
Choosing to become ASC account company
ASC credits
OF 4
ASCA redemption credit
ASC debits
OF 5
ASCA transfer to imputation credit account
Table O11: ASC credits
Table O12: ASC debits
Subpart OJ—Policyholder credit accounts (PCA)
[Repealed]
Introductory provision
OJ 1
General rules for companies and other persons with policyholder credit accounts
[Repealed]
Companies with policyholder credit accounts
Introductory provision
OJ 2
Policyholder credit accounts of companies
[Repealed]
Policyholder credits of PCA company
OJ 3
PCA transfer from imputation credit account
[Repealed]
OJ 4
PCA transfer from FDP account
[Repealed]
OJ 5
PCA transfer of life insurance business
[Repealed]
OJ 6
PCA credit for maximum deficit in FDP account
[Repealed]
OJ 7
PCA credit for reduced deficit in FDP account
[Repealed]
Policyholder debits of PCA company
OJ 8
PCA payment of tax relating to policyholder base
[Repealed]
OJ 9
PCA transfer to imputation credit account
[Repealed]
OJ 10
PCA transfer to group account
[Repealed]
OJ 11
PCA company’s transfer of life insurance business
[Repealed]
Persons with policyholder credit accounts
Introductory provisions
OJ 12
Choosing to become PCA person
[Repealed]
OJ 13
Choosing to stop being PCA person
[Repealed]
Policyholder credits of PCA person
OJ 14
PCA person’s equivalent credit
[Repealed]
OJ 15
PCA person’s credit for transfer of life insurance business
[Repealed]
Policyholder debits of PCA person
OJ 16
PCA person’s payment of tax relating to policyholder base
[Repealed]
OJ 17
PCA person’s equivalent debit
[Repealed]
OJ 18
PCA person’s debit for transfer of life insurance business
[Repealed]
Table O13: policyholder credits
Table O14: policyholder debits
Table O15: person's policyholder credits
Table O16: person's policyholder debits
Subpart OK—Maori authority credit accounts (MACA)
Introductory provision
OK 1
General rules for Maori authorities with Maori authority credit accounts
Maori authority credits
OK 2
MACA payment of tax or transfer to account
OK 3
MACA transfer of excess tax from other Maori authorities
OK 4
MACA payment of further income tax
OK 4B
MACA expenditure on research and development
[Repealed]
OK 5
MACA distribution with Maori authority credit
OK 6
MACA dividend derived with imputation credit
OK 6B
MACA attributed PIE income with imputation credit
OK 6C
MACA research and development tax credit
OK 7
MACA dividend derived with FDP credit
[Repealed]
OK 8
MACA resident withholding tax withheld
OK 9
MACA reversal of tax advantage arrangement
Maori authority debits
OK 10
MACA distribution
OK 11
MACA transfer of excess tax to other Maori authorities
OK 12
MACA refund of income tax or transfer of excess tax to period or tax type
OK 13
MACA payment of other taxes
OK 14
MACA refund of FDP
[Repealed]
OK 14B
MACA refund of tax credit
OK 15
MACA debit for loss of shareholder continuity
OK 16
MACA breach of Maori authority credit ratio
OK 17
MACA tax advantage arrangement
OK 18
MACA final balance
Maori authority credits attached to distributions
OK 19
Maori authority credits attached to distributions
OK 20
MACA benchmark distribution rules
Further income tax
OK 21
Further income tax for closing debit balance
OK 22
Further income tax paid when Maori authority no longer Maori authority
OK 23
Further income tax paid satisfying liability for income tax
OK 24
Income tax paid satisfying liability for further income tax
Table O17: Maori authority credits
Table O18: Maori authority debits
Subpart OP—Memorandum accounts of consolidated groups
Introductory provisions
OP 1
Memorandum accounts of consolidated groups
OP 2
When credits and debits arise only in group accounts
Consolidated groups and imputation credit accounts
Introductory provisions
OP 3
Changes in consolidated imputation groups
OP 4
Resident imputation subgroups
OP 5
When credits and debits arise only in consolidated imputation group accounts
OP 6
Provisions applying to consolidated imputation groups
Imputation credits of consolidated imputation groups
OP 7
Consolidated ICA payment of tax
OP 8
Consolidated ICA deposit in tax pooling account
OP 9
Consolidated ICA transfer from tax pooling account
OP 10
Consolidated ICA allocation from company with overpaid provisional tax
OP 11
Consolidated ICA payment of further income tax
OP 11B
Consolidated ICA expenditure on research and development
[Repealed]
OP 11C
Consolidated ICA credit for research and development tax credit
OP 12
Consolidated ICA dividend derived with imputation credit
OP 13
Consolidated ICA dividend derived with FDP credit
[Repealed]
OP 14
Consolidated ICA payment of FDP
[Repealed]
OP 15
Consolidated ICA replacement payment to company under share-lending arrangement
OP 16
Consolidated ICA credit transfer to company
OP 16B
Consolidated ICA credit transfer to departing consolidated imputation group for unused tax payment
OP 17
Consolidated ICA resident withholding tax withheld
OP 18
Consolidated ICA transfer from group company’s FDP account
[Repealed]
OP 19
Consolidated ICA transfer from group’s FDP account
[Repealed]
OP 20
Consolidated ICA transfer from group company’s policyholder credit account
[Repealed]
OP 21
Consolidated ICA transfer from group’s policyholder credit account
[Repealed]
OP 22
Consolidated ICA transfer from group company’s ICA
OP 23
Consolidated ICA elimination of double debit
OP 24
Consolidated ICA reversal of tax advantage arrangement
OP 25
Consolidated ICA non-resident withholding tax withheld
OP 26
Consolidated ICA payment of amount of tax for schedular payment
OP 27
Consolidated ICA payment of schedular income tax liability
Imputation debits of consolidated imputation groups
OP 28
Consolidated ICA payment of dividend
OP 29
Consolidated ICA allocation of provisional tax
OP 30
Consolidated ICA refund of income tax
OP 31
Consolidated ICA amount applied to pay other taxes
OP 32
Consolidated ICA refund from tax pooling account
OP 33
Consolidated ICA transfer within tax pooling account
OP 33B
Consolidated ICA debit for transfer from tax pooling account for policyholder base liability
OP 34
Consolidated ICA refund of FDP
[Repealed]
OP 35
Consolidated ICA refund of tax credit
OP 36
Consolidated ICA overpayment of FDP
[Repealed]
OP 37
Consolidated ICA group company’s debit
OP 38
Consolidated ICA transfer for net foreign attributed income
[Repealed]
OP 39
Consolidated ICA replacement payment by company under share-lending arrangement
OP 40
Consolidated ICA returning share transfer
OP 41
Consolidated ICA credit transfer by company
OP 41B
Consolidated ICA debit for unused tax payment of departing member
OP 41C
Consolidated ICA debit for unused tax payment of departing part of group
OP 42
Consolidated ICA debit for loss of shareholder continuity
OP 43
Consolidated ICA breach of imputation ratio
OP 44
Consolidated ICA debit for policyholder base imputation credits
OP 45
Consolidated ICA redemption debit
OP 46
Consolidated ICA tax advantage arrangement
OP 47
Consolidated ICA final balance
OP 48
Consolidated ICA refund of NRWT
OP 49
Consolidated ICA refund of amount of tax for schedular payment
OP 50
Consolidated ICA refund relating to schedular income tax liability
Table O19: imputation credits of consolidated imputation groups
Table O20: imputation debits of consolidated imputation groups
Consolidated groups and FDP accounts
Introductory provisions
OP 51
FDP accounts of consolidated FDP groups
[Repealed]
OP 52
Choosing to stop being consolidated FDP group
[Repealed]
OP 53
When group company emigrates
[Repealed]
OP 54
When credits and debits arise only in consolidated FDP group accounts
[Repealed]
OP 55
Provisions applying to consolidated FDP groups
[Repealed]
FDP credits of consolidated FDP groups
OP 56
Consolidated FDPA payment of FDP
[Repealed]
OP 57
Consolidated FDPA payment of further FDP
[Repealed]
OP 58
Consolidated FDPA dividend derived with FDP credit
[Repealed]
OP 59
Consolidated FDPA group company’s credit
[Repealed]
OP 60
Consolidated FDPA credit transfer to company
[Repealed]
OP 61
Consolidated FDPA transfer from group’s CTR account
[Repealed]
OP 62
Consolidated FDPA transfer for net foreign attributed income
[Repealed]
OP 63
Consolidated FDPA reversal of tax advantage arrangement
[Repealed]
FDP debits of consolidated FDP groups
OP 64
Consolidated FDPA payment of dividend
[Repealed]
OP 65
Consolidated FDPA credit transfer by company
[Repealed]
OP 66
Consolidated FDPA refund of FDP
[Repealed]
OP 67
Consolidated FDPA overpayment of FDP
[Repealed]
OP 68
Consolidated FDPA refund of tax credit
[Repealed]
OP 69
Consolidated FDPA transfer to imputation credit account
[Repealed]
OP 70
Consolidated FDPA transfer to group’s CTR account
[Repealed]
OP 71
Consolidated FDPA group company’s debit
[Repealed]
OP 72
Consolidated FDPA breach of FDP ratio
[Repealed]
OP 73
Consolidated FDPA debit for loss of shareholder continuity
[Repealed]
OP 74
Consolidated FDPA debit for policyholder base FDP credits
[Repealed]
OP 75
Consolidated FDPA breach of FDP ratio by PCA company
[Repealed]
OP 76
Consolidated FDPA tax advantage arrangement
[Repealed]
OP 77
Consolidated FDPA final balance
[Repealed]
Table O21: FDP credits of consolidated FDP groups
Table O22: FDP debits of consolidated FDP groups
Consolidated groups and CTR credits
Introductory provisions
OP 78
CTR accounts of consolidated groups
[Repealed]
OP 79
When credits and debits arise only in CTR group accounts
[Repealed]
OP 80
Provisions applying to consolidated groups with CTR accounts
[Repealed]
CTR credits of consolidated groups
OP 81
Consolidated CTRA tax credit for conduit tax relief
[Repealed]
OP 82
Consolidated CTRA reduction of FDP
[Repealed]
OP 83
Consolidated CTRA dividend derived with CTR credit
[Repealed]
OP 84
Consolidated CTRA group company’s credit
[Repealed]
OP 85
Consolidated CTRA transfer from group’s FDP account
[Repealed]
OP 86
Consolidated CTRA reversal of tax advantage arrangement
[Repealed]
CTR debits of consolidated groups
OP 87
Consolidated CTRA payment of dividend
[Repealed]
OP 88
Consolidated CTRA transfer to group’s FDP account
[Repealed]
OP 89
Consolidated CTRA adjustment for conduit tax relief
[Repealed]
OP 90
Consolidated CTRA group company’s debit
[Repealed]
OP 91
Consolidated CTRA increase in resident shareholding
[Repealed]
OP 92
Consolidated CTRA breach of CTR ratio
[Repealed]
OP 93
Consolidated CTRA tax advantage arrangement
[Repealed]
OP 94
Consolidated CTRA final balance
[Repealed]
Consolidated groups’ FDP payments and refunds
OP 95
FDP payable for credits and debits in group’s CTR account
[Repealed]
OP 96
Refund on transfer from group’s FDP account
[Repealed]
Table O23: conduit tax relief credits of consolidated groups
Table O24: conduit tax relief debits of consolidated groups
Consolidated groups and branch equivalent tax accounts
Introductory provisions
OP 97
Branch equivalent tax accounts of consolidated BETA groups
[Repealed]
OP 98
Choosing to stop being consolidated BETA group
[Repealed]
OP 99
When credits and debits arise only in branch equivalent tax group accounts
[Repealed]
Branch equivalent tax credits of consolidated BETA groups
OP 100
Consolidated BETA payment of income tax on foreign income
[Repealed]
OP 101
Consolidated BETA payment of income tax
[Repealed]
OP 102
Consolidated BETA remaining debit balances
[Repealed]
OP 103
Consolidated BETA refund of FDP
[Repealed]
OP 104
Consolidated BETA credit for loss of shareholder continuity
[Repealed]
Treatment by consolidated BETA groups of BETA debits from conduit relief
OP 104B
Consolidated BETA group with debit balance, including debits from conduit relief, in certain income years
[Repealed]
Branch equivalent tax debits of consolidated BETA groups
OP 105
Consolidated BETA payment of FDP
[Repealed]
OP 106
Consolidated BETA reduction of FDP
[Repealed]
OP 107
Consolidated BETA refund of income tax
[Repealed]
OP 108
Consolidated BETA debit for loss of shareholder continuity
[Repealed]
Debit if credit balance at beginning of first affected income year
OP 108B
Consolidated BETA group with credit balance at beginning of first affected income year
[Repealed]
Table O25: branch equivalent tax credits of consolidated BETA groups
Table O26: branch equivalent tax debits of consolidated BETA groups
Consolidated groups and policyholder credit accounts
Introductory provision
OP 109
Policyholder credit accounts of consolidated groups
[Repealed]
Policyholder credits of consolidated groups
OP 110
Consolidated PCA transfer from imputation credit account
[Repealed]
OP 111
Consolidated PCA transfer from FDP account
[Repealed]
OP 112
Consolidated PCA group company’s credit
[Repealed]
OP 113
Consolidated PCA maximum deficit debit in FDP account
[Repealed]
OP 114
Consolidated PCA reduced deficit debit in FDP account
[Repealed]
Policyholder debits of consolidated groups
OP 115
Consolidated PCA payment of tax relating to policyholder base
[Repealed]
OP 116
Consolidated PCA transfer to imputation credit account
[Repealed]
Table O27: policyholder credits of consolidated groups
Table O28: policyholder debits of consolidated groups
Subpart OZ—Terminating provisions
OZ 1
No imputation credit for pre-imputation tax paid
OZ 2
No imputation debit for pre-imputation refund
OZ 3
Overpaid income tax for pre-imputation income year
OZ 4
Terminating modifications to debits for loss of shareholder continuity
OZ 5
ASCA lost excess available subscribed capital
OZ 6
ASCA redemption of unused investments
OZ 7
Memorandum accounts in transitional period
OZ 7B
Maori authority credit ratios for transitional period
OZ 8
Attaching imputation credits: maximum permitted ratio
OZ 9
Benchmark dividends: ratio change
OZ 10
Modifying ratios for imputation credits
OZ 11
Tax credits for imputation credits
OZ 12
Tax credits for non-resident investors
OZ 13
Fully credited dividends: modifying actual ratio
OZ 14
Dividends from qualifying companies
OZ 15
Attaching imputation credits and notional distributions: modifying amounts
OZ 16
BETA reductions
[Repealed]
OZ 17
CTRA reductions
[Repealed]
OZ 18
Credit-back of PCA balance
[Repealed]
Part R General collection rules
Subpart RA—General withholding and payment obligations
Introductory provisions
RA 1
What this Part does
RA 2
Amounts treated as income tax
Payment and withholding obligations
RA 3
Terminal tax obligations
RA 4
Provisional tax obligations
RA 5
Tax obligations for employment-related taxes
RA 6
Withholding and payment obligations for passive income
RA 6B
Withholding and payment obligations for retirement scheme contributions
RA 6C
Withholding and payment obligations for residential land
RA 7
Payment of tax by public authorities
RA 8
Liability of persons receiving payments or benefits
RA 9
Treatment of amounts withheld as received
RA 10
When obligations not met
RA 11
Adjustment to correct errors: certain underpayments
RA 12
Adjustment to correct errors: certain excess amounts
Payment dates
RA 13
Payment dates for terminal tax
RA 14
Payment dates for provisional tax
RA 15
Payment dates for interim and other tax payments
RA 16
Payment date when taxable activity ends
RA 17
Payment date when RWT-exempt status ends
RA 18
Payment date for emigrating companies
Refunds
RA 19
Refunds of excess amounts or when amounts mistakenly paid
Amalgamations
RA 20
Amalgamation of companies
Regulations
RA 21
Regulations
Application of other provisions
RA 22
Limits on application of other provisions for purposes of PAYE rules
RA 23
Application of other provisions for purposes of ESCT rules and NRWT rules
RA 24
Application of other provisions for purposes of RSCT rules
Subpart RB—Terminal tax
RB 1
Payment of terminal tax
RB 2
Income tax liability for non-filing taxpayers for non-resident passive income
[Repealed]
RB 3
Schedular income tax liability for filing taxpayers for non-resident passive income
RB 4
Using refunds to satisfy tax liabilities
Subpart RC—Provisional tax
Introductory provisions
RC 1
What this subpart does
RC 2
Provisional tax rules and their application
RC 3
Who is required to pay provisional tax?
RC 4
Choosing to pay provisional tax
Calculating provisional tax liability
RC 5
Methods for calculating provisional tax liability
RC 6
Standard method
RC 7
Estimation method
RC 7B
AIM method
RC 8
GST ratio method
Instalments of provisional tax
RC 9
Provisional tax payable in instalments
Table R1: Summary of instalment dates and calculation methods for provisional tax
RC 10
Calculating amount of instalment under standard and estimation methods
RC 10B
Calculating amount of instalment for periods using AIM method
RC 11
Calculating amount of instalment using GST ratio
RC 12
Voluntary payments
RC 13
Paying 2 instalments for tax year
RC 14
Paying 1 instalment for tax year
Requirements for using GST ratio
RC 15
Choosing to use GST ratio
RC 16
Who may use GST ratio?
RC 17
When GST ratio must not be used
RC 18
Changing calculation method
RC 19
Disposal of assets
Transitional years
RC 20
Calculating residual income tax in transitional years
RC 21
Paying provisional tax in transitional years
RC 22
Calculating instalments in transitional years: standard method
RC 23
Calculating instalments in transitional years: estimation method
RC 24
Calculating instalments in transitional years: GST ratio method
RC 25
Consequences of change in balance date
When persons start or stop paying GST, or change taxable periods
RC 26
Registering for GST or cancelling registration
RC 27
Payment of provisional tax instalments when GST cycle changed
Treatment of groups of companies and amalgamated companies
RC 28
Provisional tax rules and consolidated groups
RC 29
Residual income tax of consolidated groups
RC 30
Consolidated groups using estimation method
RC 31
Consolidated groups using GST ratio method
RC 32
Wholly-owned groups of companies
RC 33
Amalgamated companies: calculating residual income tax
Attribution rule for income from personal services
RC 34
Attribution rule for income from personal services
Credits
RC 35
Further income tax credited to provisional tax liability
RC 35B
Treatment of overpaid provisional tax instalments calculated using AIM method
Disaster relief
RC 36
Persons affected by adverse events
[Repealed]
Early-payment discounts
RC 37
Availability of early-payment discounts
RC 38
Crediting income tax with early-payment discount
RC 39
Credit treated as payment of income tax
RC 40
Some definitions
Subpart RD—Employment-related taxes
Introductory provision
RD 1
What this subpart does
PAYE rules and PAYE income payments
Introductory provisions
RD 2
PAYE rules and their application
RD 3
PAYE income payments
RD 3B
Shareholders who are employees, for some companies: income other than PAYE
RD 3C
Shareholders who are employees, for some companies: PAYE and income other than PAYE
RD 4
Payment of amounts of tax to Commissioner
Types of PAYE income payments
RD 5
Salary or wages
RD 6
Certain benefits and payments
RD 7
Extra pay
RD 7B
Treatment of employee share schemes
RD 8
Schedular payments
RD 8B
Treatment of PAYE-related overpayments
Calculating amounts of tax
RD 9
Maximum amount
RD 10
Amounts of tax for PAYE income payments
RD 10B
Amounts of tax for schedular payments
RD 10C
Calculating amounts of tax following changes to rates or thresholds
RD 11
Amount of tax in certain circumstances
Adjustments for certain PAYE income payments
RD 12
Multiple payments of salary or wages
RD 13
Advance payments
RD 13B
Adjustments for payroll donations
RD 14
Changes to tax rates for salary or wages
[Repealed]
RD 15
Payments of salary or wages in pay periods
RD 16
Payments to private domestic workers
RD 17
Payment of extra pay with other PAYE income payments
RD 18
Schedular payments without notification
[Repealed]
RD 19
Schedular payments to non-resident entertainers
RD 20
Schedular payments to subcontractors
Paying amounts of tax
RD 21
When amounts of tax not withheld or payment insufficient
RD 22
Providing employment income information to Commissioner
RD 23
Bonds given by employers of certain non-resident employees
RD 24
Exemptions for non-resident contractors
Fringe benefit tax (FBT) rules and fringe benefits
Introductory provisions
RD 25
FBT rules and their application
RD 26
Liability for FBT
Value of fringe benefits
RD 27
Determining fringe benefit values
RD 28
Private use of motor vehicle: calculation methods
RD 29
Private use of motor vehicle: formulas
RD 30
Private use of motor vehicle: 24-hour period
RD 31
Motor vehicle test period
RD 32
Replacement motor vehicles
RD 33
Subsidised transport
RD 34
Employment-related loans: value using prescribed interest rates
RD 35
Employment-related loans: value using market interest rates
RD 36
Repayment of employment-related loans
RD 37
Contributions to superannuation schemes
RD 38
Contributions to funds, trusts, and insurance premiums
RD 39
Benefits provided by charitable organisations
RD 40
Goods
RD 41
Services
RD 42
Goods at staff discount
RD 43
Goods on special with staff discount
RD 44
Goods disposed of by group companies
RD 45
Unclassified benefits
RD 46
Adjustments for unclassified benefits on amalgamation
Attributing fringe benefits to employees
RD 47
Attribution of certain fringe benefits
RD 48
When attributed benefits provided to more than 1 employee
RD 49
Application of thresholds to attributed benefits
RD 50
Employer’s liability for attributed benefits
RD 51
Calculation of all-inclusive pay
RD 52
Calculation for certain employees when information lacking
RD 53
Pooling non-attributed benefits
Taxable value of fringe benefits
RD 54
Value of and payments towards fringe benefits
RD 55
Private use of motor vehicle: taxable value in cases of part ownership
RD 56
Private use of motor vehicle: when schedular value not used
RD 57
Private use of motor vehicle: when schedular value used
Options for payment of FBT
RD 58
Single rate option
RD 59
Alternate rate option
RD 60
Close company option
RD 61
Small business option
RD 62
Changes in payment periods
RD 62B
Obligations of cross-border employees when FBT liability not paid
RD 63
When employer stops employing staff
Employer’s superannuation contribution tax (ESCT) rules and employer’s superannuation contributions
Introductory provisions
RD 64
ESCT rules and their application
RD 65
Employer’s superannuation cash contributions
RD 66
Complying fund rules
[Repealed]
Calculating amounts of tax
RD 67
Calculating amounts of tax for employer’s superannuation cash contributions
RD 67B
Calculating amounts of tax following changes to rates or thresholds
RD 68
Choosing to have amount treated as salary or wages
RD 69
Choosing different rates for employer’s superannuation cash contributions
[Repealed]
RD 70
Calculating amounts of tax on failure to withhold
RD 71
Amounts of tax treated as paid to and received by superannuation funds
RD 71B
Obligations of cross-border employees when amounts of tax not paid
Tax on certain withdrawals from superannuation funds
RD 72
Recovery of tax paid by superannuation funds
[Repealed]
Subpart RE—Withholding tax on resident passive income (RWT)
Introductory provisions
RE 1
RWT rules and their application
RE 2
Resident passive income
Withholding obligations
RE 3
Obligation to withhold RWT
RE 4
Persons who have withholding obligations
RE 5
No withholding obligation in certain circumstances
RE 6
When obligation to withhold unreasonable
RE 7
When resident passive income paid to trustees
RE 8
When resident passive income paid to nominees
RE 9
Agents’ or trustees’ obligations in relation to certain dividends
RE 10
Special rule relating to payments of interest
RE 10B
Amounts withheld from distributions to holders of FIF attributing interests
RE 10C
Obligations of custodial institutions in relation to certain payments of investment income
RE 11
Notification by companies
Calculating amounts of tax
RE 12
Interest
RE 13
Dividends other than non-cash dividends
RE 14
Non-cash dividends other than certain share issues
RE 14B
Combined cash and non-cash dividends
RE 14C
Non-cash dividends distributed through intermediaries
RE 15
Bonus issues in lieu and shares issued under profit distribution plans
RE 16
Taxable Maori authority distributions
RE 17
Replacement payments under share-lending arrangements
RE 18
Payments made by RWT proxies
RE 18B
Capital value increase under inflation-indexed instruments: RWT cap
RE 19
Choosing other rates
Paying amounts of tax
RE 20
Paying RWT
RE 21
Basis for payment of RWT
RE 22
When payment treated as non-resident passive income
RE 23
When amount of tax treated as FDP credit
[Repealed]
RE 24
When amount of tax treated as Maori authority credit
RE 25
When amount of tax treated as imputation credit
RE 26
Payment by proxy
Persons with RWT-exempt status
RE 27
RWT-exempt status
RE 28
When RWT-exempt status ends
RE 29
Establishing whether persons have RWT-exempt status
RE 30
When unincorporated bodies have RWT-exempt status
Subpart RF—Withholding tax on non-resident passive income (NRWT)
Introductory provisions
RF 1
NRWT rules and their application
RF 2
Non-resident passive income
RF 2B
Non-resident financial arrangement income: outline and concepts
RF 2C
Meaning of non-resident financial arrangement income
Withholding obligations
RF 3
Obligation to withhold amounts of tax for non-resident passive income
RF 4
Non-resident passive income received by agents and others
RF 5
When amounts of tax already withheld
RF 6
When amounts of tax not withheld or partly withheld
Calculating amounts of tax
RF 7
General rate for NRWT
RF 8
Certain dividends
RF 9
When dividends fully imputed
RF 10
Non-cash dividends
RF 11
Dividends paid to companies associated with non-residents
RF 11B
Dividends paid by companies in certain situations
RF 11BB
Certain dividends paid to dual resident companies
RF 11C
Interest paid by non-resident companies to non-residents
RF 12
Interest paid by approved issuers or transitional residents
RF 12B
Interest derived jointly with residents
RF 12C
Amount derived from non-resident life insurer becoming resident
Certain financial arrangements involving related-party debt
RF 12D
Determining amount of non-resident financial arrangement income
RF 12E
When non-resident financial arrangement income treated as paid
RF 12F
Adjustments: first year additional amounts
RF 12G
Choosing to treat income as non-resident financial arrangement income
RF 12H
Meaning of related-party debt
RF 12I
Concepts used for definition of related-party debt
RF 12J
Treatment of certain payments made under indirect associated funding arrangements
Paying amounts of tax
RF 13
Basis for payment of amounts of tax for non-resident passive income
RF 14
Treatment of FDP credits
[Repealed]
RF 15
Commissioner’s power to vary amounts of tax
RF 16
Relationship with RSCT rules
Subpart RG—Payments for foreign dividends (FDP)
[Repealed]
Introductory provisions
RG 1
FDP rules and their application
[Repealed]
RG 2
Foreign dividends
[Repealed]
Obligation to make payments
RG 3
Obligation to pay FDP
[Repealed]
Calculation of payments
RG 4
Calculating amount of FDP
[Repealed]
Adjustments to payments
RG 5
Credit balance in branch equivalent tax account
[Repealed]
RG 6
Using loss balances
[Repealed]
RG 7
Reduction of payments for conduit tax relief
[Repealed]
Subpart RH—Withholding tax on retirement scheme contributions
RH 1
RSCT rules and their application
RH 2
Retirement scheme contributions
RH 3
Retirement savings schemes
RH 4
Retirement scheme contributors
Calculating amounts of tax
RH 5
Calculating amounts of tax for retirement scheme contribution
RH 6
Calculating amounts of tax on failure to withhold
Subpart RL—Residential land withholding tax
RL 1
Residential land withholding tax
RL 2
Vendors: who must pay, and how?
RL 3
Associated persons: who must pay, and how?
RL 4
How much RLWT?
RL 5
Paying RLWT
RL 6
Commissioner repaying RLWT
Subpart RM—Refunds
Introductory provision
RM 1
What this subpart does
Refunds for overpaid amounts
RM 2
Refunds for overpaid tax
RM 3
Refunds for overpaid FDP
[Repealed]
RM 4
Overpayment on amended assessment
RM 5
Overpayment on income statements
[Repealed]
RM 6
Refunds after 4-year period ends
[Repealed]
RM 6B
Refunds for overpaid AIM method instalments
RM 7
Refunds to PAYE intermediaries
RM 8
Overpaid RWT or NRWT
RM 9
Calculations for attributed and non-attributed fringe benefits
Use of refunds
RM 10
Using refund to satisfy tax liability
RM 11
Using GST refund to pay instalment of provisional tax
RM 12
Reduction in provisional tax liability
Limits on refunds and transfers
ICA companies
RM 13
Limits on refunds for ICA companies
RM 14
Limits on refunds when company stops being ICA company
RM 15
Changes in credit balances
RM 16
Treatment of amounts not refunded
RM 17
Treatment of further income tax paid
Companies receiving foreign dividends
RM 18
Limits on refunds related to foreign dividends
[Repealed]
RM 19
Treatment of financial arrangements
[Repealed]
RM 20
Treatment of amounts not refunded
[Repealed]
RM 21
Refunds when loss balances used to reduce net income
[Repealed]
Maori authorities
RM 22
Limits on refunds for Maori authorities
RM 23
Limits on refunds when Maori authority stops being Maori authority
RM 24
Increase in credit balances
RM 25
Treatment of amounts not refunded
RM 26
Treatment of further income tax paid
RM 27
Application when no credits arise
Persons with policyholder credit accounts
RM 28
Limits on refunds for PCA persons
[Repealed]
RM 29
Limits on refunds when person no longer PCA person
[Repealed]
RM 30
Changes in credit balances
[Repealed]
RM 31
Treatment of amounts not refunded
[Repealed]
Qualifying companies
RM 32
Application of sections RM 13 to RM 17 to qualifying companies
Certain unit trusts and group investment funds
RM 33
Limits on refunds for certain unit trusts and group investment funds
Subpart RP—Intermediaries
Introductory provision
RP 1
What this subpart does
PAYE intermediaries
Obligations and treatment of PAYE intermediaries
RP 2
PAYE intermediaries
RP 3
Requirements for listed PAYE intermediaries
[Repealed]
RP 4
Payment of subsidies to certain PAYE intermediaries
[Repealed]
RP 5
Subsidy claims
[Repealed]
RP 6
Operation of PAYE intermediaries’ trust accounts
Employers’ responsibilities
RP 7
General responsibilities of employers
RP 8
Information for PAYE intermediaries
RP 9
Authorised transfers from accounts
RP 10
When transfers from accounts not authorised
RP 11
Employer’s superannuation cash contributions
RP 12
When payments made directly to employees
PAYE intermediaries’ responsibilities
RP 13
General responsibilities of PAYE intermediaries
RP 14
Collection, payment, and information requirements
RP 15
When employers have authorised transfers from accounts
RP 16
Obligations for employer’s superannuation contributions
Tax pooling intermediaries
RP 17
Tax pooling intermediaries
RP 17B
Tax pooling accounts and their use
RP 18
Deposits in tax pooling accounts
RP 19
Transfers from tax pooling accounts
RP 19B
Transfers for certain expected tax liabilities
RP 20
Declining, amending, or reversing transfers
RP 21
Refunds from tax pooling accounts
Subpart RZ—Terminating provisions
Provisional tax
RZ 1
Certain elections to become person with provisional tax liability
RZ 2
Amount of provisional tax based on 1997–98 or earlier tax year
RZ 3
Standard method: 2010–11 to 2012–13 income years
RZ 4
GST ratio method: 2010–11 to 2013–14 income years
RZ 5
Calculating amounts under standard method: 2010–11 to 2012–13 income years
RZ 5B
Standard method: new personal tax rate persons from 1 October 2008 to end 2009–10 income year
[Repealed]
RZ 5C
GST ratio method: new personal tax rate persons from 1 October 2008 to end 2009–10 income year
[Repealed]
RZ 5D
Standard method or GST method: transition for Maori authorities
Refunds
RZ 6
Limits on refunds: transitional dates
Withdrawal income
RZ 7
Withdrawal income
[Repealed]
RZ 8
Payment and rate of withdrawal tax
[Repealed]
RZ 9
Relief in certain cases
[Repealed]
RZ 10
Recovery of amounts payable to Commissioner
[Repealed]
Refunds for life insurers
RZ 11
Refunds for life insurers
Tax pooling intermediaries
RZ 12
Adjustments to interest in requests made after commencement
Non-resident financial arrangement income
RZ 13
Treatment of prepayments
RZ 14
Listed PAYE intermediaries: transitional provision
RZ 15
Treatment of certain refunds made on income statements: 1 April 2008 to 31 March 2019
RZ 16
Treatment of certain refunds not paid within 4-year period: 1 April 2008 to 31 March 2013
Part Y Definitions and related matters
Subpart YA—General definitions
YA 1
Definitions
YA 2
Meaning of income tax varied
YA 3
Treatment of qualifying company election tax, FBT, FDP penalty tax, imputation penalty tax, and withdrawal tax
[Repealed]
YA 4
General rules for giving information or communicating matters
YA 5
General rule: capacity of trustees
Subpart YB—Associated persons and nominees
Table Y1: Associated person rules
Associated persons
YB 1
What this subpart does
YB 2
Two companies
YB 3
Company and person other than company
YB 4
Two relatives
YB 5
Person and trustee for relative
YB 6
Trustee and beneficiary
YB 7
Two trustees with common settlor
YB 8
Trustee and settlor
YB 9
Settlor and beneficiary
YB 10
Who is a settlor?
YB 11
Trustee and person with power of appointment or removal
YB 12
Partnership and partner
YB 13
Look-through companies and owners of interests
YB 14
Tripartite relationship
YB 15
Exceptions for employee trusts
YB 16
Exceptions for certain trusts and charitable organisations
YB 17
Partnerships: partnership and associate of partner
[Repealed]
YB 18
Persons habitually acting together: 1988 version provisions
[Repealed]
YB 19
Person and controlled non-profit organisation: 1990 version provisions
[Repealed]
YB 20
Some definitions
[Repealed]
Nominees
YB 21
Transparency of nominees
Subpart YC—Measurement of company ownership
Control
YC 1
Meaning of control
[Repealed]
Voting and market value interests
YC 2
Voting interests
YC 3
Market value interests
YC 4
Look-through rule for corporate shareholders
YC 5
Treatment of special corporate entities
YC 5B
Treatment of mixed-ownership enterprises
YC 6
Disregarding certain securities
Voting and market value interests: modifications for continuity provisions
YC 7
When sections YC 8 to YC 19B apply
YC 8
Death of share or option holder
YC 9
Shares or options held by trustees
YC 10
Shareholders holding less than 10% direct interests
YC 11
No look-through rule for companies in certain cases
YC 12
Public unit trusts
YC 13
Corporate spin-outs
YC 14
Disregarding concessionary rules
YC 15
Directors’ knowledge of failure to meet requirements of continuity provision
YC 16
Disregarding market value changes
YC 17
Demutualisation of insurers
YC 18
Reverse takeovers
YC 18B
Corporate reorganisations not affecting economic ownership
YC 18C
Railways restructure not affecting Crown economic ownership
YC 19
Legislative conversion of foreign company of proprietors
YC 19B
Treatment when certain trusts terminated
YC 20
Credit account continuity provisions: excluded fixed rate securities
Subpart YD—Residence and source in New Zealand
Residence
YD 1
Residence of natural persons
YD 2
Residence of companies
YD 3
Country of residence of foreign companies
YD 3BA
Country of residence of joint trustees
YD 3B
Crown
Source
YD 4
Classes of income treated as having New Zealand source
YD 4B
Meaning of permanent establishment
YD 5
Apportionment of income derived partly in New Zealand
YD 5B
Attribution of income and expenditure to permanent establishment in New Zealand
YD 6
Apportionment of income from sea transport
YD 7
Apportionment of film rental income
[Repealed]
YD 8
Apportionment of premiums derived by non-resident general insurers
YD 8B
Apportionment of life insurance premiums derived by Lloyd’s of London
Conduit tax relief companies: special residence rules
YD 9
Residence of CTR company shareholders
[Repealed]
YD 10
Meaning of CTR holding company
[Repealed]
YD 11
Meaning of CTR group member
[Repealed]
Subpart YE—References to balance dates and years
YE 1
References to balance dates and years
Subpart YF—Currency conversion
YF 1
General rules for currency conversion
YF 2
Other rules for currency conversion: approved alternatives
Subpart YZ—Terminating provisions
YZ 1
Source rule for interest
YZ 2
Saving of effect of section 394L(4A) of Income Tax Act 1976
YZ 3
Saving effect of section DF 5 of Income Tax Act 1994
YZ 4
Saving of effect of certain terms defined in Canterbury Earthquake Recovery Act 2011
YZ 5
New Zealand Memorial Museum Trust — Le Quesnoy: sunset
Part Z Repeals, amendments, and savings
ZA 1
Repeals
ZA 2
Consequential amendments to other enactments
ZA 3
Transitional provisions
ZA 4
Saving of binding rulings
ZA 5
Saving of accrual determinations
ZA 6
Comparative tables of old and new provisions
Schedule 1 Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits
Schedule 2 Basic tax rates for PAYE income payments
Schedule 3 Payment of provisional tax and terminal tax
Schedule 4 Standard rates of tax for schedular payments
Schedule 5 Fringe benefit values for motor vehicles
Schedule 6 Prescribed rates: PIE investments and retirement scheme contributions
Schedule 10 Straight-line equivalents of diminishing value rates of depreciation
Schedule 11 New banded rates of depreciation
Schedule 12 Old banded rates of depreciation
Schedule 13 Depreciable land improvements
Schedule 14 Depreciable intangible property
Schedule 15 Excepted residential land
Schedule 17 Types and classes of livestock
Schedule 18 Categories of livestock for which national standard costs to be declared
Schedule 18B Premier yearling sales
Schedule 18C Breeds and classes of bloodstock
Schedule 19 Expenditure in avoiding, remedying, or mitigating detrimental effects of discharge of contaminant or making of noise
Schedule 20 Expenditure on farming, horticultural, aquacultural, and forestry improvements
Schedule 21 Excluded activities for research and development activities tax credits
Schedule 21 Expenditure and activities related to research and development
[Repealed]
Schedule 21B Expenditure or loss for research and development tax credits
Schedule 22 Proscribed R&D activities
Schedule 23 Meaning of permanent establishment
Schedule 24 International tax rules: grey list countries
Schedule 25 Foreign investment funds
Schedule 26 Low tax jurisdictions or territories
[Repealed]
Schedule 27 Countries and types of income with unrecognised tax
Schedule 28 Requirements for complying fund rules
Schedule 29 Portfolio investment entities: listed investors
Schedule 31 Annualised equivalent amount for Part M
Schedule 32 Recipients of charitable or other public benefit gifts
Schedule 33 Default fractions of foreign superannuation withdrawals
Schedule 34 Community housing trusts and companies: income and assets of beneficiaries and clients
Schedule 35 Public purpose Crown-controlled companies
Schedule 36 Government enterprises
Schedule 37 Statutory producer boards
Schedule 38 Acts exempting income from tax: income included in family scheme income
Schedule 39 Items for purposes of definition of special excluded depreciable property
[Repealed]
Schedule 48 Enactments repealed
Schedule 49 Enactments amended
Schedule 50 Amendments to Tax Administration Act 1994
Schedule 51 Identified changes in legislation
Schedule 52 Comparative tables of old and rewritten provisions
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Notes
Part A Purpose and interpretation
AA 1 Purpose of Act
The main purposes of this Act are—
(a)
to define, and impose tax on, a net amount of income:
(b)
to impose obligations concerning tax:
(c)
to set out rules for calculating tax and for satisfying the obligations imposed.
Defined in this Act: amount, income, tax
Compare: 2004 No 35 s AA 1
Section AA 1(a): amended, on 1 April 2023, by section 5(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section AA 1 list of defined terms amount: inserted, on 1 April 2023, by section 5(2)(a) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section AA 1 list of defined terms income: inserted, on 1 April 2023, by section 5(2)(a) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section AA 1 list of defined terms net income: repealed, on 1 April 2023, by section 5(2)(b) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
AA 2 Interpretation
Aids to interpretation
(1)
Diagrams, examples, flowcharts, readers’ notes, and the lists of defined terms following sections are included in this Act only as interpretational aids. If there is conflict between an interpretational aid and a provision of this Act, the provision prevails.
Defined terms
(2)
If a defined term is used in a section and is not included in the list of defined terms following the section, the term is nevertheless used in the section as defined.
Compare: 1994 No 164 s AA 2
Section AA 2(1): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
AA 3 Definitions
Role of Part Y
(1)
Definitions of terms that apply generally for the purposes of this Act, and general provisions on the interpretation and construction of this Act, appear in Part Y (Definitions and related matters).
Role of Legislation Act 2019, Part 2
(2)
The Legislation Act 2019, Part 2, also contains definitions of terms, including in particular the term person, and other provisions that apply to the interpretation and construction of this Act.
Compare: 2004 No 35 s AA 3(2)
AA 4 Crown bound
This Act binds the Crown.
"Related Legislation
"Related Legislation
"Related Legislation
Versions
Act
In force
Previous version
as at 01 March 2024
Income Tax Act 2007
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